new farm business plan

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

• Plan for the economic sustainability of a new farm enterprise.
• Obtain funding to purchase land, equipment and other resources from lending institutions, investors and/or grant making agencies.
• Articulate what their farm will look like.

On this page, we compiled free farm business planning resources to help you understand what a formal business plan is, and how to start planning your farm business. Sections include:

• Developing a Farm Business Plan
• Enterprise Budgeting

Enterprise budget resources are included on the farm business planning page because such tools are usually essential in helping you to develop your business plan.

Planning your farm business involves more than is outlined on this page alone. You’ll probably also be interested in funding (loans/grants) , farm incorporation , and risk management . Our  starting a farm page is worth visiting first. Also, you might find the following article helpful, because it touches on many farm business planning topics: Farm Products, What to Charge: Marketing, Price, Calculating Costs, Strategy and Much More .

1. Developing a Farm Business Plan

A  business plan  is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to revisit regularly. 

Planning and Funding Your Farm Business  from the Cornell University Small Farms Project has lots of important and useful farm business planning resources.

Rural Businesses  is a web and print publication from the Minnesota institute for Sustainable Agriculture (MISA).

Building a Business Plan for Your Farm: Important First Steps  is a 20 page farm business planning publication that discusses the initial steps to help you move toward writing a formal business plan.

The Center for Agroecology has a Small Farm Business Planning publication that goes over many of the basics in a step by step format.

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is a farm business planning publication available from SARE.

Do I need a Business Plan for my Farm? is a web resource from the New England Small Farm Institute. It’s a great place to get started.

AgPlan  from the University of Minnesota helps rural business owners develop a business plan for free, while also offering sample business plans for ideas, and a way to print or download your plan.

Developing a Farm Business Plan includes several helpful resources from the USDA National Agricultural Library’s Rural Information Center.

Organic Farm Business Planning Page  from North Carolina State University features a number of publications and links related to financial planing for organic farmers.

Agricultural Business Planning Templates and Resources   is an ATTRA publication most relevant to smaller-scale or alternative agricultural entrepreneurs.

Beginning Farmer and Rancher Resources offers comprehensive resources on Bookkeeping and Other Basics ; Cash Flow Budgeting and Managing Debt ; Small Farm and Ranch Income Taxes , and more.

Purdue University’s Center for Food and Agricultural Business  has educational resources to explore, such as the New Ventures in Food and Agriculture in Indiana , which offers business planning assistance.

Purdue University Cooperative Extension offers strategic farm business planning tools for commercial farm producers.

Penn State University College of Agricultural Sciences has many Business Planning tools and information.  Penn State Cooperative Extension has a Developing a Business Plan page. Penn State also has a Farm Business Plan Template that allows you to plug in your information and create a basic business plan.

The U.S. Small Business Administration  works with local partners to counsel, mentor and train small businesses. It is worth getting to know their programs and connect with your local office.

The Martindale Center Reference Desk has an extensive  compilation of links to calculators, applets, spreadsheets, courses, manuals, handbooks, simulations, animations, videos and more. Martindale’s Agriculture Center can be of great use to farmers making business plans.

2. Enterprise Budgets

Enterprise budgets project costs and returns for a particular farm production practice. You can use enterprise budgets to make smart business management decisions, and to help you develop a viable business plan.

Enterprise Budgeting Tools of all sorts from the Agricultural Marketing Resource Center, including organic crop budgeting tools, many vegetable budgeting tools, the crop conversion tool for side-by-side crop comparisons, specialty crop and livestock budgets, hydroponics budgets, wind calculators, composting calculators, manure calculators, distillers grain budgets, biomass calculators and specialty foods calculators.

Introduction to Farm Planning Budgets for New and Beginning Farmers (Virginia Tech)

Importance and Use of Enterprise Budgets in Agriculture   (University of Nevada)

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

• Enterprise Budgets and Production Costs for Organic Production (ATTRA)
• Organic Crop Production Enterprise Budgets and Information   (Iowa State)
• Organic Enterprise Budget (Kansas Rural Center)

More Enterprise Budget Pages and Information

• Enterprise Budgets List (Virginia Cooperative Extension)
• Dairy Sheep Enterprise Budget (Center for Integrated Ag Systems, UW-Madison)
• Crop Budgets (University of Maryland)
• Farm Management Enterprise Budgets (Ohio State)
• Alabama Enterprise Budget Summaries (Alabama A&M and Auburn) 
• Start developing your business plan with the resources at   https://www.beginningfarmers.org/farm-business-planning/
• You can find more gr eat farming resources at   https://www.beginningfarmers.org/additional-farming-resources/

How to Start a Farm: A Step-by-Step Guide for Aspiring Farmers

Published: August 27, 2024

Ever dreamed of trading your desk job for the rewarding work of tending to luscious crops or raising healthy livestock? You're not alone. The farming industry, a cornerstone of our economy and food security, is experiencing a renaissance as more people seek to reconnect with the land and build sustainable, fulfilling careers.

Starting a farm is no small feat – it requires careful planning, hard work, and a willingness to learn. But for those with the passion and determination, it can be an incredibly rewarding journey. In this comprehensive guide, we'll walk you through the essential steps to turn your farming dreams into reality, from assessing your skills to managing your operation.

Ready to dig in? Let's explore how you can cultivate your own slice of agricultural paradise!

Why Start a Farming Business?

Farming isn't just about producing food – it's a way of life that offers a unique blend of challenges and rewards. From small family farms to larger commercial operations, the agricultural sector is diverse and dynamic.

In 2023, there were about 1.89 million farms in the United States. Statista reported the total farmland area in the United States reached 878.6 million acres — incredible!

These farms play a huge role in feeding our nation and contributing to local economies.

So, why are more people interested in starting farms these days? Here are a few compelling reasons:

Food security and quality : Many aspiring farmers want to contribute to a more resilient and sustainable food system, providing their communities with fresh, high-quality produce.

Connection to nature : Farming offers a chance to work outdoors, observe the changing seasons, and develop a deep connection with the natural world.

Independence and entrepreneurship : Running a farm business allows for autonomy and the opportunity to be your own boss.

Sustainability and environmental stewardship : Many new farmers are drawn to eco-friendly practices, seeing farming as a way to positively impact the environment.

Community impact : Farms can become integral parts of local communities, fostering relationships and supporting regional food systems.

Defining Your Farm Vision

Defining a vision helps you stay focused as you navigate farming and agriculture. Let's break down the key components of defining your farm vision.

Choose Your Farming Focus

Deciding what to farm is one of the most crucial and exciting parts of your journey. Consider these options:

Row crops (corn, soybeans, wheat)

Vegetables and fruits

Herbs and spices

Flowers and ornamentals

Cattle (beef, dairy, minitures )

Poultry ( chickens , turkeys, ducks)

Sheep or goats

Specialty Products:

Honey and beekeeping

Aquaculture (fish farming)

Niche crops (hops, lavender, hemp)

When choosing your focus, consider:

Local climate and soil conditions

Market demand in your area

Your personal interests and expertise

Potential profitability and startup costs

Remember, you're not limited to just one focus. Many successful farms diversify their operations to spread risk and capture different markets.

Determine Your Farm's Scale

The size of your operation will impact everything from your workload to your equipment needs. Consider these options:

Small Family Farm:

Typically less than 50 acres

Often focuses on high-value crops or specialty products

May rely more on direct-to-consumer sales

Can be managed by a family with minimal outside labor

Mid-Size Farm:

Usually between 50-500 acres

May combine commodity crops with specialty products

Often requires some hired labor

Can serve both local markets and larger distributors

Large Commercial Operation:

Often focuses on commodity crops or large-scale livestock

Requires significant equipment and labor

Usually sells to major distributors or processors

Your chosen scale should align with your goals, resources, and management capacity. Starting small and scaling up gradually is often a wise approach for new farmers.

Organic vs. Conventional Farming

This choice will significantly impact your farming practices, certifications, and target market. Let's compare:

Organic Farming:

Avoids synthetic pesticides and fertilizers

Focuses on natural pest control and soil health

Requires certification process (typically 3 years)

Often commands higher prices but may have lower yields

Growing consumer demand for organic products

Conventional Farming:

Utilizes modern agricultural technologies and inputs

Generally higher yields

Less restrictive regulations

May be more cost-effective in some cases

Established markets and supply chains

Hybrid Approaches:

Some farmers use organic practices without certification

Others implement sustainable practices within a conventional framework

Consider your personal values, target market, and the specific requirements of your chosen crops or livestock when making this decision. Next we need a business plan.

Business Planning

Turning your farm vision into reality requires more than just a green thumb – it demands careful planning and financial savvy. A well-crafted business plan will be your roadmap to success, helping you navigate challenges and seize opportunities.

Particularly if you are seeking financial assistance, a business plan will often be required by the lender.

Let's break down the key components of effective farm business planning.

Develop a Comprehensive Business Plan

Your farm business plan is a living document that outlines your goals, strategies, and financial projections. Here's what to include:

Executive Summary:

Briefly describe your farm concept, goals, and key financial projections.

Farm Description:

Detail your farming focus, location, and unique selling points.

Explain your production methods and capacity.

Market Analysis:

Identify your target market and competitors.

Describe your marketing and sales strategies.

Organization and Management:

Outline your farm's structure and key personnel.

Include any advisors or partners.

Products and Services:

Detail what you'll produce and any value-added products or services.

Financial Plan:

Include startup costs, operating expenses, and revenue projections.

Outline your funding sources and financial strategies.

Remember, your business plan isn't set in stone. Review and update it regularly as your farm grows and evolves.

Conduct Market Research and Feasibility Studies

Understanding your market is crucial for making informed decisions. Here's how to dig in:

Analyze Local Demand:

Survey local farmers' markets, grocers, and restaurants.

Research consumer trends in your area.

Identify Your Competition:

Who else is producing similar products?

What are their strengths and weaknesses?

Explore Distribution Channels:

Investigate options like farmers' markets, CSAs (community supported agriculture – aka cropsharing), wholesalers, and direct-to-consumer sales.

Assess Price Points:

What are customers willing to pay for your products?

How do your production costs compare to potential revenue?

Conduct a SWOT Analysis :

Evaluate your farm's Strengths, Weaknesses, Opportunities, and Threats.

Pro Tip: If you want answers to most of these questions above, just check out the local farmer's markets and see who is setting up shop.

Use tools like USDA market reports , local extension office resources, and agricultural association data to inform your research.

Create Financial Projections and Budgets

Solid financial modeling is the backbone of a successful farm. Here's what to focus on:

Startup Costs:

Land acquisition or leasing

Equipment and infrastructure

Initial inventory (seeds, livestock, etc.)

Legal and licensing fees

Operating Expenses:

Labor costs

Feed , fertilizer, and other inputs

Utilities and fuel

Insurance and taxes

Loan payments

Revenue Projections:

Estimate sales based on production capacity and market prices

Factor in seasonality and potential crop yields or livestock production rates

Cash Flow Forecast:

Project your monthly income and expenses

Identify potential cash flow gaps and plan accordingly

Break-Even Analysis:

Calculate how much you need to produce and sell to cover your costs

Long-term Financial Goals:

Plan for equipment upgrades or farm expansion

Set targets for profitability and growth

Remember to be conservative in your estimates and always plan for unexpected expenses. Many successful farmers recommend having at least six months of operating expenses saved as a buffer.

Pro Tip: Consider using farm management software to help with financial tracking and projections. Tools like Ranchr help you stay organized and make data-driven decisions.

From choosing a business structure to understanding agricultural regulations, our next section moves into the legalities of the farming business.

Legal and Regulatory Considerations

While it might seem overwhelming at first, understanding and complying with legal requirements will protect your farm and set you up for long-term success. Let's break down the key legal and regulatory considerations for your new farm.

Choose a Business Structure

Your business structure affects everything from day-to-day operations to taxes and personal liability. Here are common options for farms:

Sole Proprietorship :

Simplest structure, often used by small family farms

Owner has complete control but also full personal liability

Business and personal taxes are filed together

Partnership :

Suitable for farms with multiple owners

Partners share profits, losses, and liabilities

Requires a clear partnership agreement

Limited Liability Company (LLC) :

Offers personal asset protection

Flexible management structure

Can be taxed as a partnership or corporation

Corporation :

Provides strongest protection from personal liability

More complex and costly to set up and maintain

Might be suitable for large-scale farming operations

Cooperative :

Owned and operated by a group of farmers

Profits and earnings are distributed among members

Common for organic farms or specialty crop producers

Consult with an attorney or accountant familiar with agricultural businesses to choose the best structure for your specific situation.

Register Your Farm Business

Once you've chosen a structure, it's time to make your farm official:

Choose a Business Name :

Select a unique name and check its availability

Register your "Doing Business As" (DBA) name if different from your legal name

Obtain an Employer Identification Number (EIN) :

Apply for an EIN from the IRS , even if you don't plan to have employees right away

Register with State and Local Agencies :

File necessary paperwork with your Secretary of State's office

Register for state and local taxes

Open a Business Bank Account :

Keep your farm finances separate from personal accounts

Obtain Necessary Licenses and Permits

Licensing requirements vary by location and farm type. Here are some you might need:

General Business License :

Often required by your city or county

Seller's Permit :

Necessary if you plan to sell products directly to consumers

Example seller's permit webpage from California

Zoning and Land Use Permits :

Ensure your property is zoned for agricultural use

Environmental Permits :

May be required for water usage, waste management, or pesticide application

Food Safety Licenses :

Necessary if you're processing or selling food products

Organic Certification :

Required if you plan to market products as organic

Check with your local agricultural extension office or Small Business Administration for specific requirements in your area.

Understand Agricultural Regulations and Compliance

Farming is subject to various regulations designed to ensure food safety, environmental protection, and fair labor practices. Key areas to understand include:

Food Safety Modernization Act ( FSMA ) :

Establishes science-based standards for growing, harvesting, packing, and storing produce

Environmental Regulations :

Clean Water Act , pesticide use guidelines, soil conservation requirements

Labor Laws :

Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act

Animal Welfare Regulations :

If applicable, understand requirements for livestock care and handling

Tax Regulations :

Special provisions for farmers, including deductions for equipment and conservation practices

Insurance Requirements :

Understand needs for liability, crop, and property insurance

Stay informed about regulations by:

Attending workshops offered by your local extension office

Joining agricultural associations in your area

Regularly checking USDA and FDA websites for updates

Next, you'll need to decide on the type of land and how you'll secure it.

Securing Land and Resources

Finding the right piece of land is not just about acreage – the quality of your land will significantly impact your farm's success. Let's explore how to secure the perfect plot for your agricultural dreams.

Find and Evaluate Suitable Farmland

When searching for farmland, consider these factors:

Proximity to markets and suppliers

Local climate and growing conditions

Zoning laws and agricultural protections

Size and Topography :

Ensure adequate space for your planned operations

Consider how the land's contours will affect farming activities

Soil Quality :

Fertility and composition

Drainage characteristics

History of use and potential contamination

Water Access :

Availability of irrigation sources

Water rights and regulations

Existing Infrastructure :

Buildings, fencing, and road access

Power and utility connections

Resources for finding farmland:

Local real estate agents specializing in rural properties

USDA's Farm Service Agency ( FSA website)

State departments of agriculture

Farm Link programs connecting retiring farmers with new farmers

Options for Acquiring Land

Depending on your financial situation and long-term goals, consider these options:

Pros: Full control, potential for equity growth

Cons: High upfront costs, long-term commitment

Pros: Lower initial investment, flexibility

Cons: Less control, potential for lease instability

Rent-to-Own :

Pros: Path to ownership with lower initial costs

Cons: Potentially higher long-term costs

Partnerships :

Pros: Shared costs and risks

Cons: Shared decision-making, potential for conflicts

Incubator Farms :

Pros: Low-risk way to start farming, access to shared resources

Cons: Limited scale, temporary solution

When evaluating these options, consider:

Your long-term vision for the farm

Financial projections and cash flow

Local land values and market trends

Assess Soil Quality, Water Access, and Infrastructure Needs

Once you've identified potential land, conduct thorough assessments:

Conduct comprehensive soil tests (pH, nutrients, organic matter)

Check for soil compaction or erosion issues

Research the land's cropping history

Water Access and Quality :

Verify water rights and regulations

Test water quality for irrigation suitability

Assess natural drainage and potential for flooding

Infrastructure Assessment :

Evaluate existing buildings for usability and code compliance

Check fencing conditions

Assess road access for farm equipment and deliveries

Utility Connections :

Verify availability and capacity of electricity, gas, and internet

Consider costs for any necessary upgrades

Environmental Factors :

Check for wetlands or protected habitats

Assess windbreaks and sun exposure

Before making any commitments:

Visit the property multiple times, in different weather conditions

Review all legal documents carefully, ideally with an attorney

Consider future expansion needs and how the land might accommodate growth

By carefully evaluating your land options and understanding the resources at your disposal, you're setting a strong foundation for your farming venture. In our next section, we'll explore how to finance your farm, from loans and grants to innovative funding strategies.

Financing Your Farm

Turning your farming dream into reality requires more than just hard work and determination – it also needs capital. Financing a farm can be challenging, but with the right approach and knowledge of available resources, you can secure the funding you need to get your operation off the ground. Let's explore your options and strategies for financing your farm.

Explore Funding Options

Farm Loans :

USDA Farm Service Agency (FSA) loans

Direct Operating Loans for expenses like seeds, livestock, and equipment

Farm Ownership Loans for purchasing land

Commercial bank agricultural loans

Farm Credit System loans

USDA Rural Development grants

State-specific agricultural grants

Private foundation grants for sustainable or innovative farming practices

Investors :

Angel investors interested in agricultural ventures

Crowdfunding platforms like Steward

Community-supported agriculture (CSA) pre-sales

Personal Funding :

Family and friends investments

Home equity loans (use caution with this option)

Remember, each funding source has its own requirements, interest rates, and terms. Carefully evaluate each option to find the best fit for your farm's needs and your financial situation.

Understand Farm-Specific Financial Programs

Several programs are designed specifically to help farmers:

Beginning Farmer and Rancher Development Program :

Offers education, training, and technical assistance

Environmental Quality Incentives Program (EQIP) :

Provides financial assistance for implementing conservation practices

Farm Storage Facility Loan Program :

Low-interest loans for building or upgrading farm storage facilities

Value-Added Producer Grants :

Helps farmers create new products or expand marketing opportunities

Rural Energy for America Program (REAP) :

Offers grants and loans for renewable energy systems and energy efficiency improvements

Whole-Farm Revenue Protection :

A risk management tool that insures all commodities on your farm under one policy

Take time to research these programs and others offered by your state's department of agriculture. Many have specific eligibility requirements or focus on particular types of farming operations.

In our next section, we'll get into the details of equipment and infrastructure.

Equipment and Infrastructure

The right equipment and infrastructure can make or break your farming operation. From the tools you'll use daily to the buildings that house your crops or livestock, smart investments in this area can boost your productivity and set you up for long-term success. Let's explore what you'll need to get your farm up and running.

Essential Farming Equipment and Tools

Your equipment needs will vary based on your farming focus (crop type etc) and size, but here are some essentials to consider:

Tractor and Implements :

Choose a size appropriate for your acreage and tasks

Essential implements might include:

Planter or seeder

Mower or harvester

Hand Tools :

Shovels, rakes, hoes

Pruning shears and saws

Wheelbarrows or garden carts

Irrigation System :

Drip irrigation for water efficiency

Sprinklers or pivot systems for larger fields

Fencing and Gates :

Essential for livestock or to protect crops from wildlife

Storage and Transportation :

Bins and silos for grain storage

Refrigeration units for perishables

Trailers for moving equipment or products

Safety Equipment :

First aid kits

Personal protective equipment (PPE)

Fire extinguishers

Pro Tip: Start with the basics and expand as you grow. Consider renting or borrowing specialized equipment initially to manage costs. Many farmers find success in sharing expensive equipment with neighboring farms.

Building Necessary Structures

The structures you'll need depend on your farm type, but may include:

Barn or Equipment Shed :

For storing machinery, tools, and supplies

Consider a barn design that can be expanded later

Greenhouse or High Tunnel :

Extends growing season for vegetables and flowers

Provides controlled environment for seedlings

Storage Facilities :

Grain bins or silos

Cold storage for fruits and vegetables

Livestock Housing :

Barns, coops, or shelters appropriate for your animals

Include proper ventilation and waste management systems

Processing Area :

For cleaning and packaging produce

Must meet food safety regulations if selling to the public

Office Space :

For managing paperwork and farm operations

Can be as simple as a dedicated corner in your home

When planning structures, consider:

Local building codes and zoning regulations

Potential for future expansion

Energy efficiency and sustainability

Implementing Technology and Systems

Modern farming increasingly relies on technology to improve efficiency and productivity:

Farm Management Software :

Tools like Ranchr can help manage livestock records , track expenses, and monitor farm performance

While primarily designed for cattle, many features can be adapted for various farm types

Precision Agriculture Tools :

GPS-guided tractors for accurate planting and harvesting

Drones for crop monitoring and targeted spraying

Soil sensors for optimizing irrigation and fertilization

Weather Stations :

On-farm weather monitoring for precise decision-making

Automated Systems :

Automated feeding systems for livestock

Climate control systems for greenhouses

Robotic milking systems for dairy farms

Data Analytics :

Use collected data to make informed decisions about planting, harvesting, and resource allocation

Communication Systems :

Reliable internet and phone service for staying connected

Two-way radios for on-farm communication

Remember, technology should serve your farm's needs, not dictate them. Start with systems that address your most pressing challenges or offer the clearest return on investment.

When implementing new technology:

Research thoroughly and seek recommendations from other farmers

Consider compatibility with existing systems

Factor in training time for you and your staff

Plan for maintenance and upgrades

Marketing and Sales Strategies

Even the most bountiful harvest won't translate to success if you can't effectively market and sell your farm products. Developing strong marketing and sales strategies is crucial for connecting with customers and ensuring your farm's financial viability. Let's explore how to get your farm products from field to table.

Identify Target Markets and Sales Channels

Understanding your potential customers and how to reach them is the first step in effective marketing:

Define Your Ideal Customer :

Consider demographics, values, and buying habits

For example: health-conscious families, local restaurants, or organic food enthusiasts

Research Market Demand :

Analyze local and regional demand for your products

Identify gaps in the market you could fill

Explore Various Sales Channels :

Farmers' markets

Community Supported Agriculture (CSA) programs

Farm stands or on-farm stores

Local grocery stores and co-ops

Restaurants and institutions (schools, hospitals)

Online marketplaces

Wholesale distributors

Evaluate Each Channel :

Consider factors like profit margins, time investment, and alignment with your farm's values

Start with a few channels and expand as you grow

Develop a Brand and Marketing Plan

Your brand is more than just a logo – it's the story of your farm and what sets you apart:

Create Your Farm's Identity :

Develop a compelling brand name and logo

Craft your farm's story: What makes you unique? What are your values?

Build an Online Presence :

Create a user-friendly website with product information and purchasing options so you can sell direct to consumer (DTC)

Utilize social media platforms to connect with customers and share your farm's journey

Content Marketing :

Share recipes featuring your products

Create educational content about sustainable farming practices

Use visuals: high-quality photos and videos of your farm and products

Email Marketing :

Build a subscriber list to share updates, special offers, and seasonal availability

Packaging and Labeling :

Design attractive, informative packaging that reflects your brand

Ensure compliance with labeling regulations

Participate in Community Events :

Sponsor local events or host farm tours to increase visibility

Collaborate with Local Businesses :

Partner with restaurants or artisans who use your products

Key Considerations:

Start small and grow your marketing efforts as you learn what works best for your farm

Be consistent in your branding and messaging across all channels

Regularly gather customer feedback and adjust your strategies accordingly

Stay informed about food safety regulations and marketing rules in your area

Next, we'll get into the day-to-day aspects of farm operations and management, helping you run your farm efficiently and effectively.

Farm Operations and Management

Running a successful farm requires more than just growing crops or raising livestock. Effective day-to-day management, smart labor practices, and meticulous record-keeping are crucial for keeping your operation running smoothly and profitably. Let's dive into the key aspects of farm operations and management.

Day-to-Day Farm Management

Efficient daily operations are the backbone of a thriving farm:

Establish Routines :

Create daily , weekly, and seasonal checklists for essential tasks

Prioritize activities based on urgency and importance

Time Management :

Plan your day the night before

Use time-blocking techniques to allocate specific hours for different tasks

Build in flexibility for unexpected issues

Maintenance Schedule :

Implement regular equipment maintenance to prevent breakdowns

Schedule infrastructure repairs during off-peak seasons

Resource Management :

Monitor and optimize water and energy usage

Implement sustainable practices to reduce waste

Crisis Preparedness :

Develop emergency plans for various scenarios (weather events, equipment failure, etc.)

Keep emergency contact information readily available

Continuous Learning :

Stay updated on industry trends and best practices

Attend workshops and conferences to expand your knowledge

Record-Keeping and Inventory Management

Accurate records are essential for making informed decisions and ensuring compliance:

Financial Records :

Track all income and expenses

Keep receipts and invoices organized

Regularly update cash flow projections

Production Records :

Document planting dates, yields, and harvest information

For livestock, track breeding, health treatments , and production data

Inventory Management :

Maintain up-to-date records of seeds, feed, equipment, and other supplies

Implement a system to track product from field to sale

Compliance Documentation :

Keep detailed records of pesticide applications, organic practices, or other regulatory requirements

Maintain all necessary certifications and licenses

Customer and Sales Data :

Track customer preferences and ordering patterns

Analyze sales data to inform future planting or production decisions

Weather and Field Conditions :

Keep a log of weather patterns and their effects on your crops or livestock

Document soil test results and field rotations

Equipment Maintenance Logs :

Track repairs, maintenance schedules, and operating hours for all equipment

Digital Tools for Record-Keeping :

Explore farm management software options to streamline record-keeping

Consider cloud-based systems for easy access and data backup

Key Considerations for Effective Farm Management:

Develop systems and routines that work for your specific farm

Be adaptable – farming often requires quick thinking and problem-solving

Prioritize communication with your team and stakeholders

Regularly review and analyze your records to inform decision-making

Stay organized to reduce stress and increase efficiency

Starting a farm is an exciting journey that requires careful planning and dedication. From defining your farm vision to securing land and resources and implementing effective marketing strategies, each step is crucial for building a strong foundation.

Start small as you'll have room to grow as you embark on this rewarding venture and remember that every successful farmer started where you are now. Here's to rich soil, favorable weather, and bountiful harvests in your future!

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An official website of the United States government Here’s how you know

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• Local Dashboard

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Find your state/county's agriculture data and USDA resources on your farmers.gov Local Dashboard !

How to Start a Farm: Beginning Farmers and Ranchers

New to farming? Want to learn how to start a farm? USDA offers dedicated help to beginning farmers and ranchers. USDA considers anyone who has operated a farm or ranch for less than ten years to be a beginning farmer or rancher.

USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance, and conservation programs to disaster assistance.

On This Page

How to start a farm operation.

Plan Your Farm Operation

1. Start here! Think about your operation from the ground up and start planning for your business.

Plan your farm

Visit Your Service Center

2. Get in touch with your local Service Center to find programs to support your operation.

Visit A Service Center

Fund Your Farm Operation

3. USDA has spent decades helping new producers find land and money for their businesses.

Fund your farm

Build Your Business

4. Lean on USDA to help you build your operation with sound business and financial knowledge.

Build your Business

Sell Your Farm Products

5. Explore everything about producing, marketing and actually selling your final product.

Sell your products

Maintain Your Farm

6. Take care of your farm operation, and it will take care of you. USDA can help.

Maintain your farm

USDA Support for Beginning Farmers

From farm loans to crop insurance, and conservation programs to disaster assistance, USDA is here to support you and your operation.

Underlined Header Farmer Coordinators

Beginning Farmer and Rancher Coordinators are USDA team members in each state that can help you understand the USDA process and find the right assistance as you are starting out. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

View Beginning Farmer and Rancher Coordinators

Underlined Header Service Centers

Your local USDA Service Center has staff who can meet with you one-on-one to help you identify USDA programs that meet the needs of your operation, including farm loans and conservation assistance. Service center staff can guide you through the process of preparing and submitting required paperwork, with no need to hire a paid preparer. 

If you need information in a language other than English, we offer free translation services .

Find Your Local USDA Service Center

Underlined Header Self-Service Options

After you've registered your farm and set up an individual customer record with your local USDA Service Center, you can sign up for a secure farmers.gov account to access a number of self-service features. For example, you can:

• View loan information, history, and payments.
• Get help requesting financial assistance.
• View, upload, download and e-sign conservation documents.
• Request conservation assistance.
• View, print and export detailed farm records and farm/tract maps.

Learn More About Farmers.gov Accounts

Tools for Farmers

Learn about conservation issues and build a list of concerns to discuss with a local USDA conservation specialist.

Learn about USDA disaster assistance programs that might be right for you by completing five simple steps.

Learn about the farm loans that might be right for you, check your eligibility, and get instructional help with the application forms.

Get Involved

In addition to our farm programs, there are many leadership opportunities for beginning farmers to contribute their voices and experience. Through USDA, you can take advantage of several key opportunities like committee elections, research and promotion programs, and federal advisory committees. 

Connect With Your Agricultural Community

Additional Resources

• Farmers.gov Blog: Beginning Farmers
• Fact Sheet for Beginning Farmers
• Have a Question? AskUSDA
• Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers
• USDA Small and Mid-sized Farmer Resources
• USDA CARES Partner Portal – Resources for underserved farmers, ranchers, and landowners and partners who work with them

Beginning Farmers Blog Posts

Inflation reduction act in action: a beginning farmer’s journey with conservation, ask the expert: beginning farmer and rancher q&a with lindsey abentroth, fridays on the farm: from veteran to beginning farmer, farmers.gov dashboard pilot: a gateway into farmer-focused data and information, usda’s support for beginning farmers and ranchers, ask the expert: new to farming because of the pandemic q&a with anne stephens, ask the expert: veterans transitioning to production agriculture q&a with chris groskreutz, ask the expert: beginning farmer and rancher q&a with sarah campbell, new farmers.gov feature enables usda customers to manage farm loans online, find your local service center.

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Farm Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,500 farmers create business plans to start and grow their farm businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a farm business plan template step-by-step so you can create your plan today.

Download our Ultimate Farm Business Plan Template here >

What is a Farm Business Plan?

A business plan provides a snapshot of your farm business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Farm

If you’re looking to start a farm business or grow your existing farm business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm business in order to improve your chances of success. Your farm business plan is a living document that should be updated annually as your company grows and changes. It can be used to create a vegetable farm business plan, or a dairy farm, produce farm, fruit farm, agriculture farm and more.

Source of Funding for Farm Businesses

With regards to funding, the main sources of funding for a farm business are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a farm business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of farm business you are operating and the status; for example, are you a startup, do you have a farm business that you would like to grow, or are you operating a chain of farm businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the farm business industry. Discuss the type of farm business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of farm business you are operating.

For example, you might operate one of the following types among others:

• Vegetable Farm : this type of farm grows a wide variety of vegetables (but not grains or soybeans) and melons in open fields and in greenhouses.
• Dairy Farm : this type of farm primarily raises cattle for milk. Typically, this type of farm does not process the milk into cheeses or butter, etc.
• Fruit Farm : this type of farm primarily grows fruits.
• Hay and Crop Farm : More than half of these types of farms grow hay, while a small number grow sugar beets. A variety of other crops, such as hops and herbs, are included in the industry. Some operators also gather agave, spices, tea and maple sap.
• Industrial Hemp Farm : this type of farm grows and harvests cannabis plants with a tetrahydrocannabinol (THC) content of less than 0.3% by weight.
• Plant & Flower Farm : this type of farm grows nursery plants, such as trees and shrubs; flowering plants, such as foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods.
• Vertical Farming : This type of farm involves growing crops in vertically stacked layers, often using controlled environment agriculture (CEA) technologies. This method dramatically reduces the amount of land space needed for farming and can increase crop yields.

In addition to explaining the type of farm business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, acquisition of additional acreage, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the farm business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the farm business industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards decaffeinated farm business consumption, it would be helpful to ensure your plan calls for plenty of decaffeinated options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your farm business plan:

• How big is the farm business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your farm business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: food manufacturers, grocery wholesalers, retail grocers, restaurants, individual consumers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of farm business you operate. Clearly food manufacturers would want different pricing and product options, and would respond to different marketing promotions than retail grocers.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other farm businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes processed foods, imported goods, and growing produce themselves. You need to mention such competition to show you understand the true nature of the market.

With regards to direct competition, you want to detail the other farm businesses with which you compete. Most likely, your direct competitors will be farm businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a farm business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of farm business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to wholesale crops, will you also offer subscriptions to individuals?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products you offer and their prices.

Place : Place refers to the location of your farm. Document your location and mention how the location will impact your success. For example, is your farm centrally located near gourmet restaurants and specialty grocers, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate farm stands, detail the locations where the stands will be placed.

Promotions : the final part of your farm business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your farm stand extra appealing to attract passing customers
• Distributing produce samples from the farm stand or at farmers markets 
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites 
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your farm business such as serving customers, delivering produce, harvesting, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or acquire more arable land.

Management Team

To demonstrate your farm business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in farming. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in farming and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per week or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your farm, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 supplier contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for seed, equipment, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a farm business:

• Location build-out including barn construction, land preparation, etc.
• Cost of equipment like tractors and attachments, silos, barns, etc.
• Cost of nutrients and maintaining machinery
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Your new farm’s business plan must include a detailed financial plan based on reasonable assumptions of your costs and revenues. To determine if the results you show in this plan will be attractive to investors, look at industry standard financial metrics to see how you measure up against the farming industry, or your sector of the industry, on average. These are some basic measures and ratios to study.

Value of Production

The value of production is equal to your farm’s cash receipts plus the changes in value of product inventory and accounts receivable, less your livestock purchases. This is a measure of the value of the commodities you have produced in the period.

Net Farm Income

The NFI or net farm income, represents the value of production less direct and capital costs in the time period. This is a dollar figure, and not a ratio relating the income to the investment made, so it cannot be used to compare the farm against other farms.

Gross Margin

This represents the NFI less depreciation. The gross margin shows how much money is available in the year to cover the unallocated fixed costs, and dividends to owners and unpaid operators.

Return on Farm Assets

This is a ratio that can be used to compare the farm with others. This is calculated as NFI plus interest expense less unpaid operator labor, all divided by the total assets of the farm.

Asset Turnover Ratio

This ratio is equal to the value or production over the total farm assets. Combined with the operating profit margin ratio, this shows the efficiency of the farm in generating revenues.

Operating Profit Margin Ratio

This ratio is similar to Return on Farm Assets, but divides the same numerator (NFI plus interest expense less unpaid operator labor) by the value of production figure. This shows the percentage of each revenue dollar that becomes profit. If it is low, a higher turnover can compensate, and if it is high, a lower turnover ratio is required.

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Farm Business Plan Summary

Putting together a business plan for your farm business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. It can be used for a small farm business plan template or any other type of farm. You will really understand the farm business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful farm business.

Download Our Farm Business Plan PDF

You can download our farm business plan PDF here . This is a small farm business plan example you can use in PDF format.  

Don’t you wish there was a faster, easier way to finish your Farm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Details of a Small Farm Business Plan

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Writing a farm business plan can be a tool for you to plan your farming business. It can also be a requirement of securing grants and loans for your farm business. The process of writing a farm business plan may seem overwhelming and intimidating at first, but if you break it down into its component steps, it becomes much more manageable.

What Is a Business Plan?

A business plan is a roadmap for your small farm . It is both process and product. During the writing of a farm business plan, you'll develop an overall vision and mission for your business. You will think about your short- and long-term goals. You'll define the steps needed to achieve those goals. You'll set the direction for your business to develop over the next five years.

If you're already an established business, your new business plan will show where you're going next. A good business plan should be:

Mission Statement

Your farm’s mission statement is your overarching purpose for your business:

• Why does your farm exist?
• What purpose does your farm serve?
• Where is your farm headed?

This is beyond “make money.” This mission statement is based on your values and your core identity as a small farm.

The goals in your business plan are the specific, measurable “things” you will achieve with your small farm. Short-term goals are defined as those that you will complete within one year. Long-term goals are those that take longer than one year to complete.

SMART Goals are:

• Rewarding, and have a

Background Information

In this section of your business plan, take inventory of what you have right now:

• Where are you located?
• How many acres of land are you farming?
• When did you begin farming?
• How are you currently operating?
• What general practices do you use for such things as conservation, tillage, environmental impact, and marketing?

Farm Strategy

This is where your business plan gets to looking forward. You are going to formulate your farm strategy from now into the next five years or so.

• Gather information and research markets. Make sure that your farm plan fits into the general market in terms of supply and demand. Investigate and analyze industry trends, identify competitors, and define buyers.
• SWOT Analysis. This is an analytical tool that can be used in making decisions. SWOT stands for: strengths, weaknesses, opportunities, and threats. As a business, analyze your internal strengths and weaknesses. Then look externally at what opportunities and threats exist - competitors, new markets, government regulations, economic conditions, and so forth.
• Create alternative strategies. Looking at the information you've gleaned and the analysis you just did, think through options for your farm strategy. Don't rely on price alone; economies of scale are challenging on the small farm level.
• Don't jump to one conclusion immediately. Really spend some time fleshing out the specifics of some of the strategies and looking at their advantages and disadvantages. Try to find options that combine your internal strengths with opportunities in the external environment.
• Look at all your strategies, then reread your mission statement. The ideal farm plan will fit your mission best.
• Write an implementation plan. This is where you write a plan that will make your new strategy happen.

Marketing Strategy and Plan

In the next part of your farm business plan, you develop and outline a marketing strategy for your products and services. This can build on the research you did in the previous step. For each product, include ​the price, placement, and promotion ideas. Consider how you will convey real and perceived value to your customers.

Management Summary

This part of your business plan details your farm business’ structure. Everyone who is involved in the management of the business should be listed here. External resources are listed here as well.

Financial Analysis

In this section, you will need to detail the financial aspect of your farming operation. List your current finances in detail, including all income and operating expenses. Referring to your new strategy, you will forecast what is needed for future growth and to meet the goals you have outlined in terms of capital. Include what your future operating expenses will be.

Pulling It All Together

Writing a farm business plan is a big project. Don’t let that put you off. Your plan can be as simple as it needs to be for right now. Begin with your mission statement and goals. Do your homework by analyzing markets and researching competitors and trends. Have fun brainstorming alternative strategies and let them marinate a while. Take it one step at a time.

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How to create a farm business plan.

Crafting a comprehensive farm business plan is a crucial step towards transforming your agricultural visions into tangible realities. This plan serves as a blueprint, enabling you to formally articulate your thoughts, ideas, and aspirations. Engaging in this process can lead to profound insights, illuminating the path to a thriving agricultural enterprise.

Even though the term ‘farm business plan’ might evoke a sense of formal rigidity, it’s important to remember that this document is, in fact, a living, evolving entity. Just like a seedling that sprouts, grows, and changes with the seasons, your business plan is not meant to be static.

It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.

To get you started, we offer a detailed farm business plan template. This invaluable resource can be tailored and expanded to suit your unique agricultural venture, whether you’re cultivating a sprawling wheat field or nurturing a boutique organic herb garden.

The most effective business plans are those that exhibit flexibility and resilience, characteristics that are at the heart of any successful farm business. Agriculture, by its very nature, is a domain subject to the whims of Mother Nature. From unpredictable weather patterns to seasonal variations, farmers of all kinds grapple with an array of external factors.

Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.

Writing a Farm Business Plan Template: 15+ Things Entrepreneurs Should Include

A farm business plan, like any strategic document, should be comprehensive, encompassing all aspects of your operation, be it agricultural (crops) or product-based. Utilize these 15 key sections to shape your farm business plan template.

Do bear in mind that while these sections are integral, they are by no means exhaustive. Your farm business plan may necessitate additional topics based on your specific farming operations.

Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.

Executive Summary

The executive summary provides an essential overview of your farm business. It helps to streamline communication and understanding between various stakeholders, such as internal team members, potential lenders, business partners, and customers. When drafting your executive summary, consider the following key components:

• Business Profile : Provide a snapshot of your farm business, describing its nature and scope. Are you into crop cultivation, livestock rearing, or any specialized farming practices?
• Products : Clearly outline what product or products your farm will produce. These could range from dairy products to specific crops or even services like agrotourism.
• Production Methodology : Describe how you plan to achieve your production goals. This could involve discussing your farming techniques, usage of technology, or unique methodologies.
• Target Audience : Identify the individuals or groups who will be interested in your farm products or services. These might be local consumers, restaurants, farmers’ markets, or even online customers.
• Key Strategies : Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships.
• Mission and Vision : Briefly outline the mission and vision of your farm business. This helps to convey your long-term objectives and core values.

Remember, your executive summary is essentially the first impression of your business plan. Making it comprehensive, clear, and compelling will help attract interest and support from stakeholders.

Goals and Objectives

A well-crafted business plan should encapsulate both personal and economic goals and objectives. Many successful farm business plans also address environmental stewardship and community outreach. You may want to include goals around preserving farm resources for future generations, ensuring that both the operational and stewardship aspects remain within the family.

Introduction

Your introduction should provide information about the business owners, including their backgrounds and levels of industry experience.

Mission Statement and Values of Your Farming Business Plan

This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.

Industry History

Understanding your place within the wider agricultural landscape is key. Be sure to research farms that have historically dominated your region, whether they specialize in vineyards, urban farming, or livestock rearing. Use this research to make educated projections about the future.

Company Background and History

Share the history of your farm if it has been a long-standing family venture or the journey leading up to your purchase if it wasn’t. If your farm business is a startup, focus on the business experience and backgrounds of the involved parties.

Competitor Analysis

Understanding your competition is crucial. In the agricultural sector, farmers often share resources, such as a high-tech corn planter, or cooperate in marketing endeavors. Factor in such synergies when analyzing competitors.

Target Market

Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.

Products and Services

Describe each product or service offered by your farm, highlighting those features most appealing to your target market.

Organization, Human Resources, and Management Plans

These interconnected elements cover your farm’s day-to-day operations, employee roles and responsibilities (including their job descriptions ), and overarching management plans.

SWOT Analysis

Conduct a SWOT analysis to identify your farm’s strengths, weaknesses, opportunities, and threats. This will help you strategize on how to leverage your strengths, mitigate your weaknesses, exploit opportunities, and neutralize threats.

Your vision is the roadmap for your farm’s future. It should express not just your financial aspirations but also your plans for the farm operation in the long run.

Growth Strategy

A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.

Financial Plan

Your financial plan should include elements like balance sheets, income statements, projected cash flows, loan repayment schedules, and depreciation factors.

Marketing Strategy

A robust marketing strategy is essential for your farm’s success. Look into brochures, advertisements, and joining co-op groups. Resources from institutions like the University of Minnesota and Cornell University offer comprehensive insights into effective marketing strategies for farm businesses.

Establishing a Farming Business Entity

Discuss the legal structure of your farm business. Will it be a sole proprietorship, a partnership, an LLC, or a corporation? Outline the pros and cons of each and why the chosen structure is the best fit for your farm business.

Detailed Description of Farm Operations

Include a section that provides an in-depth look at your day-to-day farm operations. This can cover everything from crop rotation plans, livestock breeding programs, to the use of technology and machinery in your farming activities.

Risk Management Strategies

Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.

Sustainability and Environmental Impact

Highlight your farm’s approach to sustainability and its impact on the environment. Discuss practices like organic farming, conservation techniques, and renewable energy usage, which demonstrate your commitment to environmental stewardship.

Community Involvement and Social Responsibility

Describe how your farm business plans to engage with and contribute to the local community. This could include hosting educational farm tours, participating in farmers’ markets, or supporting local food programs.

Supply Chain and Vendor Relationships

Detail your farm’s supply chain and vendor relationships. Explain how you plan to source inputs like seeds, feed, or equipment, and any partnerships with local suppliers or distributors.

Technology and Innovation

Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.

Training and Development Plans

Explain how you intend to train and develop your staff. Include plans for ongoing education, skill development, and potentially, leadership training for future farm managers.

Expansion and Diversification

Outline your long-term plans for expansion and diversification. This could involve adding new crops, branching into agrotourism, or exploring value-added products like farm-produced jams or cheeses.

Exit Strategy

Consider including an exit strategy for your farming business. This could be a plan for succession, selling the business, or transitioning to a different type of agricultural operation.

Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.

Frequently Asked Questions

Include a FAQ section at the end of your business plan to address common questions potential investors or partners may have about your farm business. This can include queries about your business model, funding needs, or market potential.

Provide an addendum for additional documents that support your business plan. This can include resumes of key team members, detailed financial projections, market research data, or letters of support from future customers or partners.

Do I Need a Business Plan for My Farm?

Even if you’re knee-deep in the dirt, tending to your crops or livestock, every farming enterprise has the core elements of a business at its heart. These include aspects such as operations, marketing, human resources, and finances. When you embark on developing a farm business plan, it might astonish you to see where the journey takes you. You could end up discovering facets of your farm business that you hadn’t previously considered.

One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!

More than just a document outlining your farm’s structure, your farm business plan should serve as a valuable decision-making tool. With it, you can confidently navigate the varied terrain of farm management, from daily operations to larger strategic initiatives. When you’ve got a meticulously crafted, robust farm business plan, it doesn’t just narrate your farm’s story, but also provides you with a roadmap to future growth and success.

Beyond this, a top-notch farm business plan can also be a lever that helps you access critical financing. Lenders and investors are more likely to support your venture when they see a well-structured, thoughtful business plan that articulates your vision, illustrates your understanding of the market, and demonstrates your commitment to fiscal responsibility.

So, where to begin? Let’s dive into our fundamental guide to crafting a farm business plan using our adaptable template. This resource has been designed to help you capture every aspect of your agricultural venture, laying a strong foundation for a bountiful future.

How Do I Write a Small Farm Business Plan?

Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.

How do you start a farm business plan?

Start with one piece of the business plan. One of the hardest sections of a business plan to write is the Mission Statement . If you get bogged down there, continue and come back to it later.

How much do farm owners make a year?

As you can imagine, the net income varies greatly by type of farm business.

The bottom line after expenses may not be high. Farmers need to consider net worth as assets grow and the farm property increases in value.

How much does it cost to start a small farm?

Getting set up to raise 100 beef cattle costs lots more than getting set up to raise 100 rabbits.

Things like property acquisition, soil preparation, equipment and machinery and the key costs. Other costs may be irrigation systems, packaging and trucking.

What is the most profitable farming business?

Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.

It’s also one of the most expensive businesses to start, requiring significant capital investment. The industry is very labor-intensive and labor costs are high.

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• Business plans

Farm Business Plan

Used 5,069 times

Farm Business Plan gives an overview of the company, including corporation history, owner backgrounds, creations and more. Use this template to quickly develop your farm company plan.

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Farm Business Plan Template

Prepared by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Title] ​

​ [Sender.Phone] ​

​ [Sender.Email] ​

Executive Summary

​ [Sender.Company] is owned and operated by [Sender.FirstName] [Sender.LastName] .

​ [Sender.Company] produces and sells (product types, e.g., produce, pastured animals, herbs, etc.), and we also provide on-farm services including (service types, e.g., apple picking, events, produce stand, etc.).

The target audience for [Sender.Company] 's product will be local consumers and businesses whom we will target directly. To market to this audience, we plan to take advantage of public picking events, farmers' markets, and a roadside farm stand.

Future of the Farm

​ [Sender.Company] plans to turn our XX acres of farmland into a sustainable source of crops, pastured animals, and pollinators. We plan to use regenerative farming practices as much as possible and understand what management techniques work best for our acreage.

Additionally, we will have a large greenhouse and use season extension techniques to get more value out of our farmland.

To build a locally well-known brand and eventually expand our presence across the state.

To sell enough of our product to generate a positive cash flow, support the farm owners and staff, and pay back capital plus 15% interest to our investors.

To preserve and enhance our farmland so that it remains sustainable and we can continue to share the fruits of the land with others.

Follow a thorough 3-year business plan and reassess every year to ensure we remain on track.

Seek funding from our network of contacts and outside funders for start-up costs.

Execute a creative marketing plan that introduces our brand to our target market.

Company Description

Business address and contact.

​ [Sender.StreetAddress] , [Sender.City] , [Sender.State] [Sender.PostalCode] ​

​ [Sender.FirstName] [Sender.LastName] : [Sender.Phone] , [Sender.Email] ​

Principal Members

(Owner.FirstName) (Owner.LastName)

Qualifications/Experience

(number) years of experience as a farm hand at (farm name), plus an additional 5 years of experience as the farm manager

(Education)

(Operator.FirstName) (Operator.LastName)

(Experience)

Legal Structure

​ [Sender.Company] is a sole proprietorship.

Company Details

Our property is zoned for farm use, and we plan to use the land as follows:

X acres for pastured animals

X acres for produce

X acres for agritourism activities and events

Farm Assets

Greenhouse and propagation supplies

Farm stand (planned for 20XX)

Market Research

The demand for locally raised animals and grown produce is climbing at a rate of XX% per year and is expected to reach a total value of $XX billion by 20XX.

Consumer demand for free-range, pasture-raised animals is evidenced by farms like (name competitors) which have grown into valuations of (approximate company values) , respectively.

Regulations

​ [Sender.Company] is a licensed business in the State of [Sender.State] as of the year 20XX. We are in the process of applying for all of the necessary permits for constructing the farm stand, expanding the barn, and hosting on-site visitors to the farm.

Service Line

Product/service.

Services Include:

Pasture-raised animals

Produce cultivation

Public apple picking

Public hay maze

Special event packages

Marketing & Sales

Customer communications.

​ [Sender.Company] will communicate with its customers by:

Interacting with customers in-person via farmers markets, the farm stand, and through the leveraging of networking events.

Building an active social media presence on Instagram and TikTok.

Advertising agritourism activities like apple picking, hay mazes, farm trails, and other events.

Creating SEO-friendly blog posts on the company website to increase online presence.

Establishing listings with the local tourism board and activity guides.

Sales Strategy

​ [Sender.Company] 's product will be sold primarily in the (region) . The farm is located on a road with extensive car traffic, so we plan to build a farm stand on the property to capture attention and drive sales.

We also plan to build a social media presence and leverage local advertising to drive awareness of our brand. We will also attend farmers' markets within the region to meet customers face-to-face and build relationships.

Five-year plan

Year One: 20XX

Create a legal business entity

Apply for necessary licenses and permits.

Finalize farm layout.

Procure additional equipment.

Establish social media profiles.

Build a small farm stand.

Attend farmer's markets.

Year Two: 20XX

(List goals for year two)

Year Three: 20XX

Year Four: 20XX

Year Five: 20XX

​ [Recipient.FirstName] [Recipient.LastName] ​

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Starting a Small Farm: A Complete Beginner’s Guide

Starting a small farm can be a challenging and rewarding experience. As someone who has started their own small farm, I can tell you it takes a lot of hard work and dedication.

Whether you’re looking to start a small farm for personal consumption or to sell your products at local markets, there are a few key steps you’ll need to take to get started.

Once you’ve identified your niche, you’ll need to find suitable land to start your farm.

This can be challenging, especially if you’re on a tight budget. Still, various resources are available to help you find affordable land.

Once you’ve secured your land, you’ll need to develop a business plan and figure out how you’ll finance your farm. This may involve applying for grants or loans or finding investors interested in supporting your vision.

Assessing Your Goals and Resources

Defining your goals.

Before starting a small farm, it is essential to define your goals. Ask yourself what you want to achieve by starting a farm. Do you want to grow crops, raise animals, or both?

Are you looking to make a profit or just have a self-sustaining homestead? Do you want to sell your products locally or nationally?

Assessing Your Resources

Assessing your resources is also an important step in starting a small farm. You need to determine what resources you have available to you, such as land, water, equipment, and capital.

Start by evaluating your land. Do you own land or will you need to lease or purchase it? Is the land suitable for farming, or will you need to make improvements? Consider the soil quality, drainage, and access to water.

Finally, assess your financial resources. Starting a small farm can be expensive, so it is important to determine how much capital you have available and how you will finance your farm.

Consider applying for grants or loans from organizations like the USDA or local banks.

Choosing a Farming Method

Conventional farming.

When it comes to conventional farming, the focus is on maximizing yield and minimizing costs. This method relies heavily on synthetic fertilizers, pesticides, and herbicides to control pests and maximize crop yields.

Conventional farmers also use genetically modified seeds engineered to resist pests and diseases.

Organic Farming

Organic farming is a method that relies on natural processes to cultivate crops and raise livestock. This method avoids the use of synthetic fertilizers, pesticides, and herbicides and instead focuses on building healthy soil through the use of compost and other organic matter.

Organic farmers also avoid using genetically modified seeds and instead rely on natural methods to control pests and diseases.

Permaculture

Permaculture is a method of farming that focuses on designing sustainable ecosystems that mimic natural systems.

This method involves using a variety of plants and animals that work together to create a self-sustaining ecosystem.

This method can be highly effective in creating a sustainable and resilient farm ecosystem. When choosing a farming method, it’s essential to consider your goals and values as a farmer.

Conventional farming may be a good choice if you’re looking to maximize yields and minimize costs, but it can negatively impact the environment and human health.

Permaculture may be the best choice if you’re looking to create a self-sustaining ecosystem that mimics natural systems.

Ultimately, the choice of farming method will depend on your goals, values, and resources as a farmer.

Selecting Your Farm Site

When starting a small farm, choosing the right location is crucial to success. Here are some factors to consider when selecting your farm site:

Climate and Soil

The climate and soil of your farm site will determine which crops and livestock you can raise. Research the average temperature, rainfall, and growing season length of your area.

Water Resources

Access to water is essential for any farm. Look for a site with a reliable water source, such as a well or a nearby stream.

You should also consider the quality of the water, as it can affect the health of your crops and livestock. If you plan to irrigate your crops, make sure your site has the necessary infrastructure in place.

Access to Markets and Customers

You should also research the demand for your products in your area to ensure a viable market for your farm.

By taking these factors into account, you can select a farm site that will set you up for success in the long run.

Planning Your Farm

Developing a business plan.

To start a small farm, it’s crucial to have a clear idea of what you want to achieve and how you plan to achieve it. Developing a business plan is an essential step in this process.

When developing a business plan, consider the following questions: What crops or livestock will you produce?

Who is your target market? How will you market your products? What are your start-up costs and ongoing expenses? What are your projected revenues and profits?

Creating a Farm Layout

It can help you optimize your use of space, improve efficiency, and reduce costs. When creating a farm layout, consider the following factors: What is the size and shape of your land? What is the topography and soil type?

What are the climate and weather patterns in your region? What is the water source and availability? What are the zoning and land use regulations in your area?

Choosing Crops and Livestock

Here are some tips to help you choose the right crops and livestock for your farm:

READ NEXT: The Key to Safe Towing: Understanding Trailer Tongue Weight

Financing Your Farm

Finding funding sources.

The USDA offers various programs and services to help farmers get started or grow their operations, including farm loans, crop insurance, conservation programs, and disaster assistance.

Additionally, there are private lenders, grants, and crowdfunding platforms that you can explore. When researching funding sources, it’s essential to consider the eligibility requirements, interest rates, repayment terms, and any other fees associated with the loan or grant.

Applying for Loans and Grants

Once you’ve identified potential funding sources, it’s time to start the application process. Applying for loans and grants can be a time-consuming and challenging process, but it’s essential to be thorough and accurate in your application to increase your chances of approval.

When applying for loans, you’ll need to provide financial statements, tax returns, and other documentation to demonstrate your ability to repay the loan.

When applying for grants, you’ll need to provide detailed information about your farm and explain how the grant will help you achieve your goals.

You may also need to provide financial statements, tax returns, and other documentation to demonstrate your eligibility for the grant.

By researching your options and being thorough in your application, you can increase your chances of securing the funding you need to start or grow your farm.

Managing Your Farm

One of the most important aspects of running a successful farm is managing it effectively. This involves managing your finances, marketing your products, and managing your land and livestock. In this section, I will discuss each of these areas in more detail.

Managing Your Finances

This can be done using financial software or by hiring an accountant.

It is also important to have a solid business plan in place. This will help you stay on track and make informed decisions about your farm. Your business plan should include your goals, marketing strategy, and financial projections.

Marketing Your Products

This can include advertising, social media, and attending farmers’ markets and other local events.

You should also consider offering CSA (Community Supported Agriculture) shares. This is a great way to build a loyal customer base and secure a steady source of income.

Managing Your Land and Livestock

This involves regular maintenance and upkeep of your farm, including fertilizing, planting, and harvesting. You should also have a plan in place for managing pests and diseases.

When it comes to livestock, it is important to provide them with proper nutrition, shelter, and medical care. You should also have a breeding plan in place to ensure the sustainability of your herd or flock.

Machinery, engines, and farming have always been a passion of his since he was a young boy. Growing up on a small farm in rural America, he learned the value of hard work and dedication from an early age.

After completing his degree in Engineering, he decided to follow his dream and became a farmer in 2009.

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How to Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

Starting and running a successful farming business requires careful planning and strategic decision-making. One essential tool that every farmer should have is a well-crafted farming business plan. A comprehensive business plan serves as a roadmap for your agricultural venture, guiding you through the various stages of development and ensuring that you stay focused on your goals. We will provide you with a step-by-step guide on how to write an effective farming business plan and start you off with a template. 

Overview of a Farming Business Plan

Before diving into the specifics, let’s take a moment to understand what a farming & agriculture business plan entails. Essentially, a farm business plan is a written document that outlines your farming objectives, strategies, and financial forecasts. It serves as a blueprint for your farm’s operations, helping you make informed decisions and communicate your vision to potential investors, lenders, or partners.

The Purpose of a Farming Business Plan

The farming business plan is going to define and communicate your farm’s mission and goals. It helps provide a clear direction for your operations, resources, and ensures that everyone involved in the business is on the same page. Additionally, a well-crafted business plan is often required when seeking financing or partnerships. Lenders and investors use it to evaluate the viability and profitability of your farming venture.  

Key Elements of a Farming Business Plan

Let’s explore the elements that make up the Farming Business Plan. 

Executive Summary

The executive summary is a brief overview of your entire plan. It should summarize your farm’s mission, goals, target market, and competitive advantage. While it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the document.

Market Analysis

A thorough market analysis is crucial for understanding your target market, identifying potential customers, and evaluating your competition. This section should provide detailed information about market trends, customer demographics, and demand for your products or services. Conducting market research and gathering data from reliable sources will strengthen the credibility of your analysis.

Products and Services

In this section, describe the specific products or services your new farm will offer. Provide details about their features, benefits, and how they meet the needs of your target market. Discuss any unique selling points or competitive advantages that set your offerings apart from others in the industry.

Marketing and Sales

Outline the strategies for promoting and selling farm products. Explain how you plan to promote your farm and reach your target market. Include information about your pricing strategy, distribution channels, and any partnerships or collaborations that may enhance your marketing efforts. Developing a comprehensive marketing plan will help you attract customers and generate sales. 

Describe the operational processes and workflows involved in running the farm, including land preparation, planting, harvesting, livestock care, and post-harvest handling. Highlight the management structure, key personnel, and their roles and responsibilities.

Financial Plan

The financial plans are a critical component of your farming business plan as it demonstrates the financial viability and sustainability of your farm. It should include projected income statements, cash flow statements, and balance sheets for the next three to five years. Additionally, outline your funding requirements and any existing or potential sources of financing. 

American Farm Financing offers many financing options to fit your needs: operating loans, cash rent loans, farm mortgages, refinances, and equipment loans. See all AFF loan options .

Setting Financial Goals

Forecasting expenses is critical when starting a farming operation. List out the main buckets of expenses (inputs, machinery, labor, land, interest, and consulting services). Where possible, get pricing quotes to formalize your expenses as much as possible for what you would like to grow.

After you’ve forecasted expenses, you can set a goal for how much profit, or margin, you intend to make. Use futures sales prices to project what you can sell your crop for. The difference between your sales price and your expenses will become your profit. Ensure that this income matches your expectations and can cover any personal expenses you hope the money will be used for.

While a one-year operating plan is critical to get started, remember that farming is a long-term pursuit. Depending on how many upfront expenses you need to make, it may take multiple farming seasons to turn a significant profit. 

Conducting Market Research

Before you can develop a solid business plan for a farm, it is essential to conduct detailed market research. Conduct an analysis of the target market, including its size, growth potential, and trends. Identify the target customers, their needs, preferences, and buying behavior. This assessment will allow you to be an expert on the market and differentiate you from the rest of the competition. 

Writing a Farming Business Plan

Now that we have covered the key elements of a farming business plan, let’s dive into the process of writing one.

Creating a Timeline for Implementation

This timeline can be as specific to your needs as possible. You want to make sure that every necessary box is checked before launching your farming operation. This is a suggested timeline for implementing your plan, but coordinate as you see fit and adapt to things that may pop up:

Preparation: 1-6 Months 

• Complete all sections of the farming business plan, including market analysis, financial projections, and operational strategies.
• Seek funding options, such as loans, grants, or investors, and secure the necessary financing for your farming venture.
• Identify suitable land for your farm and negotiate the purchase or lease agreement.
• Conduct necessary soil testing and prepare the land for farming activities.
• Source and purchase farming equipment, machinery, and inputs (seeds, fertilizers, livestock, etc.) required for your chosen agricultural activities.
• Hire key personnel, such as farm managers, laborers, and administrative staff, as per your business plan’s organizational structure.
• Establish relationships with suppliers and vendors to ensure a steady supply of inputs.

Operations: 6-12 Months

• Initiate planting or livestock management based on the farming plan.
• Implement appropriate cultivation techniques, crop rotation, or livestock management practices.
• Monitor and adjust farming operations to optimize production.
• Develop marketing strategies to promote farm products to target customers.
• Implement sales channels, such as direct sales, farmers’ markets, online platforms, or partnerships with retailers or small restaurants.

Below is a helpful template from fsa.usda.gov to get you started. Download your farming business plan template here.

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How to Start a Farm: Your Complete Guide to Success

Candice Landau

25 min. read

Updated July 2, 2024

Free Download:  Sample Farming Business Plan Templates

Your day begins before the sun has even risen. You don your clothes and rain boots and set out into the crisp morning to feed the chickens and the cattle. It’s a clear morning and you feel good being outside, feeling frost crunch beneath your feet, watching the yard cat stretch and yawn lazily.

Already you’ve got a slew of tasks running through your head. Call the accountant about what to write off this year as a business expense. Check in with the neighbors about using that extra acre of land at the bottom of your property. Make sure to order a few more bags of chicken scratch. Fix the fence. Talk to the farm down the street about how they’re using their hilly, forested land to plan for a future logging operation.

It’s a lot, but it’s exciting that in between all the chores, there are so many opportunities for the future.

In this guide, I’m going to walk you through how to start a farm, as well as give you the resources to help you get started with a farming business today.

To supplement this guide, I interviewed two experienced farm hands: Gregory Heilers , previously an assistant farm manager, and Dr. Cindy Jones , the owner of Colorado Aromatics, a small herb farm in Colorado.

• The state of small farm business in the U.S.A.:

In the U.S., small farms are considered the backbone of the agricultural industry, with 97 percent of all U.S. farms being family-owned .

In order to be considered a small farm, the USDA Economic Research Service states that you need to gross less than $350,000 per year.

There are almost two million small farms in the U.S., a data set that includes retirement farms, off-farm occupation farms, and farm-occupation farms. You can learn more about the small farm classification system from the USDA’s website, but so long as you’re within the $0-$350,000 bracket, you can guarantee your operation will be classified as a small farm business.

• Why are you starting a small farm business?

Gregory Heilers has helped on two startup farms: his father’s 200-acre grass-fed beef and goat farm, which also includes an orchard, a berry patch, and a vegetable garden, with areas set aside for future logging; and on a seven-acre organically grown market garden in upstate New York.

Gregory believes that if you want to be successful, you should think about why you want to start your own farm before anything else. He says, ask yourself, “Is it for profit? A hobby? An altruistic contribution to society and/or animal welfare? Environmental stewardship?”

This is because your motivation for starting a farming business is the thing that will directly impact your strategy.

For Stacie and Larry Overman, starting Lavender Kisses Farm in Tennessee was a mixture of business opportunity and passion. At first, they only planned to plant lavender up their driveway, but as the couple learned more about lavender’s medicinal uses, they ultimately decided to invest in 64 acres of farmland and start a lavender farm.

The Overmans use their crops to make and sell dozens of lavender products, and aim to use some of their proceeds to support causes and organizations they care about.

The Overmans incorporated information about their farm’s mission, operating model and financial projections into a business plan that they could show to mentors with university agricultural programs, as well as banks, to demonstrate proof of concept. 

You will need to be able to answer questions about your motivation for starting a farming business, and questions like them as honestly as possible, so that you know what direction to go in. You may find that what you’re really hoping to start is a hobby farm that you can run as a side-business. If this is the case, beware that the tax implications for hobby farms are quite different that for business farms.

If you want to know whether or not you have what it takes to be a farmer, give this quiz a try . It was created by Taylor Reid, the founder of Beginning Farmers.

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Where to start if you’ve never farmed before:

If you didn’t grow up on a farm and haven’t worked on one, you may be wondering how on earth you’re going to make your dream a reality. This is a very real concern. The reality may prompt you to consider another line of work because farming is hard, and farming as a business is doubly so!

Get some real-world experience

For many modern-day farmers, especially those running large commercial farms in the Midwest, skills have been passed from generation to generation.

This isn’t the same for small startup farms. These farmers have had to acquire their skills in order to learn how to start farming, and they’ve either done so by apprenticing with other farmers, going to farm school, or doing some intense self-directed study (see the resources section at the end of this article).

According to Gregory Heilers, it’s essential to get that hands-on training. “While some claim you can learn how to be a farmer through YouTube videos or books (and those can be excellent tools), it’s very important to get some hands-on training. If you haven’t grown up around farms, you’ll want to buddy up to someone who knows what they are doing.”

Agricultural jobs are among the most dangerous in the world , so it’s no surprise that Gregory makes such a strong recommendation to learn from people who can teach you what you need to know, and share stories from their past, to bring the sometimes surprising dangers of working on a farm to life.

Aside from the dangers, there is a lot to learn about how to start a farm and how to start farming, not the least of which is how to balance the books and come out ahead! Of course, as with any profession, be careful who you choose as your mentor as there are both competent and incompetent farmers. Use the list of resources at the end of this article to help you find ways to get experience before you start your own venture.

If you are willing to put in the time, and learn the necessary farming and business skills to become the profitable small business farmer you know you could be, there’s good news. It’s doable!

Learn to farm as you go

Dr. Cindy Jones is a trained biochemist and herbalist. About eight years ago, she and her husband decided to start a small herb farm in their home state of Colorado.

Although Cindy had never farmed before, she had been an active gardener, growing the herbs she needed for her skin care product business , in her own large garden.

Starting a small herb farm seemed like a natural next step, even without any of the farming experience. “We came into farming with no background other than gardening and learned that farming is much different. We have learned a lot just from doing, networking, and talking to other farmers. We do a farmers market each Saturday during the summer so have met other farmers that way,” Cindy says.

There are of course other ways to fast track your learning, and Cindy is no stranger to setting aside reading time in order to better her business. “Recently, there have been a few books published that have been helpful, both ‘ Woman Powered Farm ‘ by Audrey Levatino and ‘ The Organic Medicinal Herb Farmer ‘ by Jeff Carpenter and Melanie Carpenter.”

Of course, not everything—including learning how to start a farm—can be learned from a book. Building good relationships and networking also go a long way to helping you pick up relevant skills, especially in the early days.

“Much of what I have learned has been from fellow lavender growers who are quick to share what works and doesn’t work for them. The United States Lavender Growers Association was founded specifically to help growers. I am one of the founding members of this group and we have many opportunities for sharing and learning through USLGA. Each year we extend our growing area slightly and each year we learn more about what we are doing. Someday we’ll get it right!” With a thriving business that relies on the farm’s produce, there’s no doubt Cindy’s already done just that.

Decide whether you’re starting a business or a hobby farm

If DIYing your farm learning experience is something you’re more interested in, hobby farming could be a better fit for you, and there’s nothing wrong with that. Hobby farming gives you the opportunity to experiment on a micro scale first.

For example, before you plant an acre worth of vegetables, plant a much smaller patch, and take the time to address and learn from problems as they arise. After a while, you’ll have developed the skills you need in order to expand. The University of Vermont Extension has a whole lot more to say about hobby farming versus running a farm as a business. If you’re interested in the topic, read their hobby farming business fact sheet .

• Step 1: Identify your niche

Even if you know exactly what type of farm you want to start, diving head first into just doing it is never a good idea.

Say you start the passion fruit farm you’ve been dreaming of for years in your home state in Florida. What if, as you’re getting ready to harvest your first batch, you then find out that all the demand for passion fruit is centered in Southern California, and not in Miami like you thought? Even if you do somehow manage to find affordable transport to get your goods to California, what if you then learn that locally-grown passion fruit is all the rage?

Within just one yield, you’re out of business and all because you didn’t know where your target market was located, or what their values were. If you’d taken the time to do your market research, you would have learned there was no demand for passion fruit in Florida. You would then have been able to choose to grow another product that was in demand, or start your farm somewhere else. Either way, you would have saved yourself a lot of trouble.

Don’t skip the market research phase

Learning to do market research is that step you really can’t skip, because while it certainly helps if you know what you want to grow, you’re still going to need to know who is going to buy your products, where you’re going to sell them, and how you’re going to do this, all while taking competitors into consideration.

Even if you know nothing about formal market research practices, you can do your own research by getting out to learn more about your customers, distribution channels, and about how to start a farm.

If you are already interested in a particular product, learn more about your local market. Check out farmers’ markets, meet other local producers, speak to customers as you shop. Better yet, survey farmers’ markets to see if any crops or products are under-represented.

Additionally, consult your local extension. Extension services provide localized resources for most aspects of gardening and small farming. For example, Oregon State University Extension has a “Small Farms” portal where you can find out more about crops, grains, soil, livestock, and much more.

The best part of these portals is their local bent. If you’re based in Oregon and want to know more about growing blackberries, you couldn’t find a better resource. Many University extensions also publish reports specific to different farm products. They may include estimates for production costs and returns, like this Crop Budgets page on the University of Maryland Extension Portal . As part of the research process, it is also highly recommended that you turn to your local state department of agriculture. Not only will they be able to provide you with the latest information on farming in your state, but they will also be able to help you figure out what licenses you need to register for, and give you local information on food safety, pesticides, market access and much more.

If you still have trouble choosing an enterprise, here’s a guide on how to pick a high-value crop , including detailed advice on how to evaluate your resources and personal considerations. If you’re willing to spend a bit of money, the Profitable Plants Digest has some niche-specific guides.

Keep an eye on emerging market trends as well. States that have legalized cannabis and hemp production have shown promise for small farmers in recent years, for example.

If you’d still like to know more about formal market research processes , you can read this complete guide.

• Step 2: Find the right farm land

Once you’ve figured out what you’re going to farm, you’re going to need to decide whether to buy land or lease it.

If you buy land, you’ll have complete control over its use, but you will also assume financial risk for the success of your enterprise. This is one of the major reasons leasing land is a popular option for many new farmers. It minimizes financial risk and requires reduced capital at the outset.

If you can’t find anyone to lease your land, there are still a few options open to you, including incubator farming , rooftop farming , and SPIN farming .

Buying your own land

Buying a farm, or farmland, isn’t for everyone learning how to start a farm, but if you feel like it’s the best option for you, there are some handy ways to figure out where to start your search. Ann Larkin Hanse, writing for Mother Earth News, suggests you narrow your search area by considering only those areas that have off-farm employment options (or markets for your farm products and necessary farm support services).

“It’s helpful to get an old-fashioned paper road map and draw two circles: one with the off-farm job in the center and a radius as long as the distance you are willing to commute, the other with your customer base in the middle and a radius as long as the distance you’re willing to travel to market,” says Ann. “Where the circles overlap is where you should look for land.”

Things to consider when looking for land

Before you find the right people to help you buy land, it’s worth familiarizing yourself with the things you’ll need to consider as you browse. At the very least this will include:

Your proximity to markets: Consider where you’re going to sell your products, or how you’re going to reach sales channels. If they’re hundreds of miles away, you’re going to struggle much more getting to market. Often it’s easiest to start local and go from there. You will likely already have completed your market research by now and should have a pretty good idea of where your market is located. Use the above diagram to help you determine the “right” area to start your land search.

Access to water: It’s important to make sure you have a steady supply of water, so be sure to ask plenty of questions and consider all of your options. How will you provide water for the plants, animals, and processing needs of your business?

If the land you are purchasing has a well, it is always good to obtain information about the well, such as type, depth, output, and age. You may also want a water quality report.

If the property is connected to a municipal water supply, knowing the price of the service can also help you determine the feasibility of a particular enterprise. If you have to pay per gallon or cubic foot, you might reconsider trout farming and try a camel dairy instead.

Soil quality: As with water, high-quality soil is a must for most farmers. Ask the current owner for soil test results. Soil tests are often available through the local extension service and sellers should expect to provide test results.

Soil testing can be an important predictor of production capacity and expenses. Accurate predictions of fertilizer needs for specific crops can be made based on the test results, which breaks down to an actual dollar value when growing. For livestock, different soil can even impact growth and health, sometimes requiring supplementation.

Facilities and Infrastructure: Depending on the type of farm you want, you may also need different outbuildings. A produce stand or farm shop might require an up-front investment. What about your livestock? Does the land include shelters for the animals you plan to raise? What about processing facilities? Different crops and animal products will require different processing and storage facilities.

Make sure to also think about things that aren’t directly related to the property. What sort of transportation and roads are available to and from the area you’re farming? While you’ll want a balance of easy access and proximity to your sales markets, keep in mind that busy roads can have an impact on livestock, soil, and water quality.

Neighbors: These can be a great resource, or a great hindrance, depending. Do they produce farm goods? What are their production practices? Are they compatible with yours? If you plan on starting an organic vegetable farm, but your neighbors spray their Christmas tree plantation with harsh pesticides and herbicides several times a year, it could dramatically impact your success.

Operating a successful farming operation will happen a lot more easily if you have a good relationship with your neighbors. Farm manager Greg Heilers says, “Meet your neighbors. Offer to help your neighbors. Be a good neighbor. Farming used to be so much more about community. It is so much easier to be successful as a farmer if you have even the slightest bit of support from your community.

“For example, if you’re a beef cattle farmer, when a calf or cow or bull breaks loose and enters a neighbor’s field, do you want them to a.) keep your animal and never come asking to see if you had an animal get loose, b.) sell it off immediately and keep the truth from you, c.) come knocking and ask if you have any cattle or d.) recognize your cattle instantly and drive ’em back to your place for you?”

In this same vein, make sure that any property you are looking at has good fences. Installing your own will likely cost a lot, and if you think you can do without good fences, remember that it may well impact the relationship you have with your neighbors. They say “good fences make good neighbors,” so find a place that has them and you won’t risk upsetting the neighbors if your cattle or goats escape onto their luscious looking bean patch.

You may even be able to cultivate a relationship with your neighbors that goes beyond just agreeing to perimeter fencing. In a best-case scenario, you might find that your farms’ outputs (especially those that are not your primary value-added product, such as manure), can be valuable inputs on your neighbor’s farm, or vice-versa.

• Step 3: Getting your farm financed

If—like most small farmers—you haven’t inherited a farm, finding the money to learn how to start a farm, and to turn your dream into a reality is going to be a core part of your go-to-market strategy.

Research your funding options

Cornell University’s guide to planning and funding your farm business is a good place to begin. It will walk you through different financing options, including self-financing options . What it won’t do is recommend you take out a credit card loan. In fact, this guide specifically suggests this is the one thing you don’t do, as you’ll be best served to invest any profits straight back into the farm, and if you don’t pay the loan back fast enough, your interest rate will spiral out of control.

Bplans also offers a comprehensive guide to funding a new business to help you think through your options.

That said, make sure to be realistic when you initially apply for funding. If you can avoid buying expensive equipment at the start, do it. Cindy Jones, the owner of Colorado Aromatics, and a small herb farm in Colorado says, “Starting a small farm is a lot of physical work and there is little equipment available to help growers on a small scale so much of the work is by hand […] We finally invested in a small tractor this year to help with tilling, ditching, and post hole digging, so some of our early plantings of perennials such as lavender are not spaced properly for a tractor.”

Once your business takes off, you can buy the things that will make life easier. And even if you don’t have a lot of cash on hand at this later date, a bank will be more likely to give you a loan if they can see you are running a profitable operation.

• Write a farm business plan

For anyone seeking a loan, writing a business plan is going to be essential. This isn’t any different for an aspiring farm owner. Even if you’re not seeking  a loan, a business plan is a useful tool to help you figure out which of your ideas are feasible, and to remind you of your goals. You can find out more about writing a business plan on our Business Planning Guide page. If validating your business ideas interests you more than funding at this stage, you might prefer to opt for a Lean Plan —or a shorter, more nimble planning process.

Look at sample farm and agriculture business plans

Not quite sure how to format your farming business plan? Take a look through our library of free farm-specific sample business plans , including a fruit farm business plan, a botanical perennials business plan, a feed and farm supply plan, a hydroponics business plan, and more!

Obviously, before you sit down to write your business plan, you’ll need to determine your cost of production . You’ll also need to know how much your rent/lease will cost you.

• Step 4: Market and sell your agricultural products

There are many different ways to market your farm products. While farmers’ markets are probably the most obvious example that comes to mind, there are a number of other channels you can use to market and sell your products.

If you have enough traffic nearby, you might find that a produce stand or farm shop right on your own property is a good option.

Another trending model is to sell your products through a CSA (which simply stands for “Community Support Agriculture”), in which patrons purchase a “share” of the season’s yield for a set price in exchange for regular deliveries of the products as they are ready. This model is especially popular because you receive payment at the beginning of the season, which can help reverse the notorious cash-flow issues faced by most farm businesses.

You could even find a local growers’ cooperative that allows you to team up with other producers to sell your products under a united brand.

Finally, even though the age of the supermarket has made retail sales of farm goods more difficult, there are still plenty of small, local health and natural food stores with whom you could partner, with the advantage of their often fiercely loyal customer bases.

Start by putting together a marketing plan. If you’re creating a business plan you’ll work on your marketing plan as part of that process.

• Learning resources for farm businesses:

Use the resources below to find out where you can learn more about how to start a farm, farming, and where you can gain some hands-on experience.

ATTRA : Attra has a great database of internships and apprenticeships for aspiring farmers. Usually, room and board are offered in addition to a small stipend. The best part of the site is the ability to search by state. That said, there are so many internships and apprenticeship programs around the U.S.A., that if you’re looking for something more niche, you can check out this list of websites that offer a variety of working opportunities.

Helpx.net : On this site, you can find a variety of small farms, rural B&Bs, and so on, where you can work in exchange for room and board (no cash stipend) and learn the ropes of your intended trade through informal and formal internships/apprenticeships. This is a global site.

WWOOF : WWOOF is a pay-per-country list directory of organic farms around the world. Again, room and board are included, but usually no cash stipend. Work through WWOOF is usually considered an informal or semi-formal internship.

The Cornell Small Farms Program : If you’re looking for enterprise-specific books, fact sheets, and articles on farming, this is a great place to start, especially if your starting point is bulking up on as much knowledge as possible.

The 20 Best College Farms : If you’re interested in finding a college where you can get hands-on experience and a modern farming education, Best College Reviews has a list of places you might want to start looking. These top 20 colleges were selected based on a number of criteria, including farm size, integration with the main campus, sustainability, courses taught at the farm, students using the farm, and integration with the community.

Other resources

Publishing houses: While Amazon does stock a handful of good books on starting a farm business, you’ll find that your particular niche might not be included. If this is the case, there are other options, including going straight to publishing house websites. The Northeast Beginning Farmers Project recommends browsing Acres U.S.A. , Chelsea Green Publishing , and Storey Publishing .

Farming magazines: There are also a number of farming magazines you can subscribe to. This is a good way to stay on top of the latest farming buzz, as well as to find out more about farming techniques and hacks, equipment, and best practices. Some popular magazines include Growing for Market , Acres U.S.A (they put on a great conference each year as well), Graze , the Stockman Grass Farmer , and the Packer . This is by no means a comprehensive list, so make sure to do your own research as well, perhaps in relation to your particular niche.

Online communities: There are also a number of great online communities that can help you get started, or where you can simply ask questions and get answers, directly from people in-the-know, or who like you are dabbling. Permies is now the largest permaculture site on the internet, and a great resource for all manner of interests, from homesteading through raising animals.

Although based in the U.K., the Farming Forum has a lot of really great conversations around topics like weather, livestock and foraging, machinery and much more. The slightly messier U.S. equivalent of this site is Agriculture.com’s community forum .

Farm Chat is another good forum for anyone interested in commercial farming.

Free Farm and Food Production Sample Business Plans : The 14 sample business plans in this section should give you an excellent sense of how to write your own small farm business plan.

• Next steps for starting a small farm business

In the wise words of Gregory Heilers, “There is always something else to do. You’ll run yourself ragged trying to get it all done. Prioritize, organize, and build efficient systems.”

A great place to start is writing a business plan. To simplify the process and ensure you include everything needed to start a farm, check out our free business plan example and template .

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• Where to start if you’ve never farmed before:

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Farm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Farm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Farm Business Plan

You’ve come to the right place to create your farm business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their farms.

Below are links to each section of a small farm business plan template. It can be used to create a vegetable farm business plan, fruit farm business plan, agriculture farm business plans or many other types of rural businesses.

Sample Business Plan For Farms & Agricultural Businesses

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief description of your farm, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your agriculture business history, its products and other services, and business structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your farm operates including industry trends, market size and growth, and government regulations.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy and tactics along with your pricing strategy. You will also provide a budget for your marketing activities including attending farmers’ markets or advertising a farm stand.
• Operations Plan – In the Operations Plan, you will discuss your farm’s day-to-day operations. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of the farm owners and farm management team, their experience in the agricultural industry, and the organizational chart.
• Financial Plan – In this section, you will provide three-year financial statements for your farm. This will include your income statements, projected balance sheets, and cash flow statements.

Next Section: Executive Summary >

Farm Business Plan FAQs

What is a farm business plan.

A farm business plan is a plan to start and/or grow your farm business. Among other things, a good agriculture farm business plan outlines your business concept, identifies your target audience , presents your marketing plan and details your financial projections.

You can  easily complete your farm business plan using our Farm Business Plan Template here .

What Are the Main Types of Farms?

There are many types of farms. Some have commercial farms that produce crops and agricultural products for sale. Others have cooperative farms owned by people who pool their resources together and share profits among themselves. There are also vegetable farms, dairy, micro, organic, poultry, subsistence, or urban farms.

What Are the Main Sources of Revenues and Expenses for a Farm?

The primary source of revenue for a farm is the sale of its farmed goods such as rice, corn, milk, beef, chicken, depending on the kind of farm a business is.

Some key expenses for a farm are labor expenses, production costs like irrigation, fertilizer, water, and machinery maintenance.

How Do You Get Funding for Your Agriculture Business?

Farm business plans often receive funding from bank loans. Financing is also typically available from grants offered by local and state governments. Personal savings, credit card financing and angel investors are other funding options. This is true for starting any agricultural business.

What are the Steps To Start a Farm Business?

Starting a farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agriculture business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  It should also include your business goals and mission statement. You can quickly complete your farm business plan using our Farm Business Plan Template here .
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your farm business is in compliance with local laws.
• Register Your Agriculture Business - Once you have chosen a legal structure, the next step is to register your farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Business Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Farm Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful farm business and agribusiness planning:

• How to Start a Farm Business

Where Can I Get a Farm Business Plan PDF?

You can download our free farm business plan template PDF here . This is a good farm business plan template you can use in PDF format.

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New and Beginning Farmer Series: Writing a Farm Business Plan

Marcus Coleman

A farm business plan can fulfill several purposes for a farm owner, including:

• Serve as an internal organizing tool used to communicate farm plans to individuals outside of the farm business.
• Serve as an internal planning tool to assist in ongoing problem-solving related to farm challenges and opportunities.
• Assist in making annual or seasonal marketing, operations, production and financial decisions.

There is no right or wrong format to use in writing a farm business plan. The primary objective is to effectively communicate what the farm business is about and the goals and strategy for business success. The plan must also convey the long-term feasibility of the farm business, supported with the vision of the farm owner as well as research related to the farm business and market environment that the farm owner seeks to participate in.

In writing a farm business plan, these steps can assist in constructing the plan:

Step 1: Write out the farm mission statement. The mission statement defines the farm business in the context of its primary business function, its products and how it seeks to produce them, its customers, and what unmet customer need it seeks to fill.

Step 2: Write out the farm vision statement. The vision statement states what the farm owner aspires the farm business to be in the future.

Step 3: Write out the farm values. Values explain how the farm business is going to conduct itself in the context of what and who it values.

Step 4: Provide an overview of the farm business. The overview will assist in assessing the farm business and provide a synopsis of what the farm business seeks to do and how it plans to achieve its goals. This overview should consist of the following:

• The purpose of the farm business.
• How the farm business can be managed into a successful operation.
• The key farm business activities.
• The important business and marketing opportunities as well as potential challenges to farm business success.
• The funding that is required to start or expand the farm business. The farm owner should also prepare a budget that provides further detail.

Step 5: Write out the farm goals and include an action plan for each. Including goals and action plans in the farm business plan is necessary as they allow the farm owner to (a) clarify ideas, (b) focus efforts, (c) have a plan to use those time and resources productively, and (d) increase the chances of achieving those goals. Including goals also allows others to understand how the farm business plans to achieve success. There is no right or wrong number of goals to include, but the goals that are included must be attainable within the scope of the farm business.

Every goal must have an action plan that explains (a) who is responsible for the goal, (b) the tasks necessary to complete the goal and (c) when the goal should be completed. The farm owner should also develop a more detailed, step-by-step action plan for their farm goals for personal use. A simple format to highlight farm goals and associated action plans in the farm business plan is show in Tables 1-3.

Table 1. Short-Term Goals (1-3 years)

Table 2. Intermediate Goals (4-6 years)

Table 3. Long-Term Goals (7 or more years)

Step 6: Provide an overview of the target customers and planned marketing strategy. The marketing planning process identifies the farm business’s target customers and the unmet customer need the farm business seeks to serve. The market planning process is summed into three questions:

• Who is the target customer and why should the customer buy from the farm?
• What are the farm business’s primary products?
• What is the plan to promote the farm business to customers?

When defining who the target customer is, the farm owner must consider the following questions:

• What types of customers are expected to buy the farm’s products?
• When and how often might customers buy the products?
• What benefits will the farm products offer customers?
• Where will customers buy the products?

When developing a market strategy, the farm owner must also consider the following questions:

• Why do people want/need the farm’s products?
• What is the plan to attract customers and keep them coming back?
• What are some marketing challenges that could be faced?

Table 4 highlights a format that can be used to present the marketing plan in the farm business plan.

Table 4. Marketing Plan

For more information:

DiGiacomo, Gigi, Robert King and Dale Nordquist. 2003. Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses. College Park, MD: Sustainable Agriculture Research and Education (SARE).

Hunger, J. David and Wheelen, Thomas L. 2007. Essentials of Strategic Management. 4th Edition. Prentice Hall. Upper Saddle River, New Jersey.

Author Information:

Marcus A. Coleman is the program director of the Grow Louisiana Beginning Farmer Training Program, Louisiana State University, LSU AgCenter.

Contact person for more details on this publication: [email protected].

Acknowledgement:

This publication was developed as a part of the Grow Louisiana Beginning Farmer Training Program and supported by a U.S. Department of Agriculture National Institute of Food and Agriculture grant (Award # 2018-70017-28597).

Visit our website: www.LSUAgCenter.com

Luke Laborde, Interim LSU Vice President for Agriculture

Louisiana State University Agricultural Center

Louisiana Agricultural Experiment Station

Louisiana Cooperative Extension Service

LSU College of Agriculture

Pub. 3800 (online) 04/22 rev.

The LSU AgCenter and LSU provide equal opportunities in programs and employment.

Have a question or comment about the information on this page?

Email marcus coleman, innovate . educate . improve lives.

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Farming Business Basics

A collection of tools, guides and information related to the business of agriculture. These resources are designed to help producers establish and sustain a profitable farm business

Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers is a multi-agency publication that provides information on assistance and targeted opportunities available to minority, women, veteran, beginning and limited resource producers.

How to Start a Farm: Beginning Farmers and Ranchers New to farming? Want to learn how to start a farm? USDA offers additional assistance to beginning farmers and ranchers. USDA considers anyone who has operated a farm or ranch for less than ten years to be a beginning farmer or rancher. USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance and conservation programs to disaster assistance.

Farm Service Agency (FSA) Webinars Upcoming and past FSA webinars, covering topics like land, capital, market access, tax education, heirs’ property and more.

How to Start a Farm Checklist Use the New Farmers Checklist to understand the steps you might need to take before setting up your operation.

Beginning Farmers and Ranchers Outreach Coordinators USDA team members can help you understand the USDA’s process and find the appropriate assistance for your operation.

Small Farm Funding Guide Find links to full-text guides on how to start a small farm business and develop business and marketing plans. Learn more about funding programs for beginning and experienced farmers, technical assistance contacts, disaster assistance and organizations with available resources.

Planning Your Farming Business Key resources for planning, setting up and financing your business and preparing for your visit to a USDA Service Center.

Small and Mid-Sized Farmer Resources This page provides small and mid-sized producers valuable resources and program information about access to capital, land management and conservation practices, managing risk, finding local markets and other educational resources.

Outreach and Small Business Assistance The Office of Small and Disadvantaged Business Utilization (OSDBU) offers vendor outreach sessions, hosts rural small business outreach events, helps foster small business connections, offers training for agency Contracting Officers and Program Managers, presents on small business contracting opportunities and provides one-on-one guidance to farmers and ranchers.

Solutions for Small-Scale Farms Fact Sheets Introductory fact sheets that provide an overview of NRCS’s technical services, conservation practices and management concepts. Topics include abandoned well plugging, fencing, forest farming and runoff management.

Conservation Technical Assistance and Resources Conservation technical assistance is the help NRCS and its partners provide to land users related to natural resource management. This page provides links to documents to assist with a variety of ecological and engineering issues such as rangeland health assessments, guidance for estimating soil moisture and more.

Collection of Conservation Assistance Resources Useful resources on conservation at USDA, including:

• Conservation Concerns Tool to explore conservation issues impacting productivity
• Conservation at Work Video series on the benefits of different conservation practices
• Step-by-step process for accessing USDA Conservation Assistance

Key Programs Catalog To discover USDA conservation programs that may be right for you, visit the Key Programs Catalog.

NRCS Registry of Technical Service Providers Technical service providers (TSPs) offer planning, design and implementation services to agricultural producers such as farmers, ranchers and private forest landowners, on behalf of the Natural Resources Conservation Service (NRCS). This registry allows agricultural producers and private forest landowners to find a certified TSP in their area.

Disaster Recovery USDA is here to help you prepare for and recover from the impacts of natural disasters and market volatility. USDA provides a suite of disaster assistance programs to help offset losses as well as crop insurance and other coverage options to help manage risk and provide a safety net.

Crop and Livestock Insurance Helpful resources to make crop and livestock insurance information readily available, including:

• Calculating premiums
• Locating agents
• Downloading files on demand
• Policy and reinsurance agreement information
• Insurance cycle details from the application process to the claims process

Noninsured Crop Disaster Assistance Program (NAP) Learn more about NAP, a program that provides financial assistance to producers of noninsurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters.

One central entry point for you to access information and help from USDA.

AskUSDA.gov | [email protected] | 1-833-ONE-USDA

Page last updated: July 5, 2023

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Here is a free business plan sample for a fruit and vegetable store.

Have you ever envisioned owning a bustling fruit and vegetable market that serves as a cornerstone of health in your community? Wondering where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for a fruit and vegetable market.

Creating a solid business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your fresh produce venture into a thriving business.

To jumpstart your planning process with ease and precision, feel free to utilize our fruit and vegetable market business plan template. Our team of experts is also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your fruit and vegetable store?

A good business plan for a fruit and vegetable market must cater to the unique aspects of this type of retail business.

Initially, it's crucial to provide a comprehensive overview of the market landscape. This includes up-to-date statistics and an exploration of emerging trends within the industry, similar to what we've incorporated in our fruit and vegetable market business plan template .

Your business plan should articulate your vision clearly. Define your target demographic (such as local residents, restaurants, or health-conscious consumers) and establish your market's distinctive features (like offering organic produce, exotic fruits, or locally-sourced vegetables).

Market analysis is the next critical component. This requires a thorough examination of local competitors, market dynamics, and consumer buying patterns.

For a fruit and vegetable market, it's imperative to detail the range of products you intend to sell. Describe your selection of fruits, vegetables, herbs, and any additional items you plan to offer, and discuss how these choices align with the preferences and needs of your customer base.

The operational plan is equally important. It should outline the location of your market, the layout of the retail space, your supply chain for fresh produce, and inventory management practices.

Given the nature of a fruit and vegetable market, it is vital to highlight the freshness and quality of your produce, your relationships with growers and suppliers, and adherence to health and safety standards.

Then, delve into your marketing and sales strategies. How do you plan to attract and keep customers coming back? Consider your approach to promotions, customer loyalty programs, and potential value-added services (like home delivery or a juice bar).

Incorporating digital strategies, such as an online ordering system or a robust social media presence, is also crucial in the modern marketplace.

The financial section is another cornerstone of your business plan. It should encompass the initial investment, projected sales, operating expenses, and the point at which you expect to break even.

With a fruit and vegetable market, managing waste and understanding the shelf life of products are critical, so precise planning and knowledge of your financials are essential. For assistance, consider using our financial forecast for a fruit and vegetable market .

Compared to other business plans, a fruit and vegetable market plan must pay closer attention to the perishability of inventory, the importance of a robust supply chain, and the potential for seasonal fluctuations.

A well-crafted business plan not only helps you to define your strategies and vision but also plays a pivotal role in attracting investors or securing loans.

Lenders and investors are keen on a solid market analysis, realistic financial projections, and a comprehensive understanding of the day-to-day operations of a fruit and vegetable market.

By presenting a thorough and substantiated plan, you showcase your dedication and readiness for the success of your venture.

To achieve these goals while saving time, you are welcome to fill out our fruit and vegetable market business plan template .

A free example of business plan for a fruit and vegetable store

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a fruit and vegetable market .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The fruit and vegetable market is an essential and robust component of the global food industry.

Recent estimates value the global fruit and vegetable trade at over 1 trillion dollars, with expectations for continued growth as consumers seek healthier eating options. In the United States, the fruit and vegetable industry contributes significantly to the economy, with thousands of markets and stores providing a wide range of produce to meet consumer demand.

These statistics underscore the critical role that fruit and vegetable markets play in not only providing nutritious food options but also in supporting local agriculture and economies.

Current trends in the fruit and vegetable industry indicate a shift towards organic and locally sourced produce, as consumers become more health-conscious and environmentally aware.

There is an increasing demand for organic fruits and vegetables, driven by the perception of better quality and concerns about pesticides and other chemicals. The local food movement is also gaining momentum, with consumers showing a preference for produce that is grown locally to support community farmers and reduce carbon emissions associated with transportation.

Technological advancements are influencing the industry as well, with innovations in vertical farming and hydroponics allowing for more sustainable and space-efficient growing methods.

Online grocery shopping and delivery services are expanding, making it easier for consumers to access fresh produce directly from their homes.

Additionally, the push for transparency in food sourcing continues to grow, with consumers wanting to know more about where their food comes from and how it is grown.

These trends are shaping the future of the fruit and vegetable market, as businesses strive to meet the evolving preferences and values of modern consumers.

Success Factors

Several key factors contribute to the success of a fruit and vegetable market.

Quality and freshness of produce are paramount. Markets that offer a wide variety of fresh, high-quality fruits and vegetables are more likely to build and maintain a dedicated customer base.

Diversity in product offerings, including exotic or hard-to-find produce, can differentiate a market from its competitors.

Location is also vital, as markets that are easily accessible to consumers will naturally attract more foot traffic.

Customer service is another important aspect, with knowledgeable and friendly staff enhancing the shopping experience and encouraging repeat visits.

Effective cost management and the ability to adapt to changing consumer trends, such as the demand for organic and locally grown produce, are crucial for the long-term viability of a fruit and vegetable market.

The Project

Project presentation.

Our fruit and vegetable market project is designed to cater to the increasing consumer demand for fresh, organic, and locally-sourced produce. Situated in a community-focused neighborhood, our market will offer a diverse selection of fruits and vegetables, emphasizing seasonal and organic options. We will partner with local farmers and suppliers to ensure that our customers have access to the freshest produce available, supporting sustainable agricultural practices and reducing our carbon footprint.

We aim to provide not just produce, but a holistic healthy eating experience by offering a range of complementary products such as herbs, spices, and artisanal condiments. Our market will be a hub for health-conscious consumers and those interested in cooking with the finest ingredients.

Our fruit and vegetable market is set to become a cornerstone in the community, promoting healthier lifestyles and fostering connections between local producers and consumers.

Value Proposition

The value proposition of our fruit and vegetable market lies in our commitment to providing the community with the highest quality fresh produce. We understand the importance of nutrition and the role that fruits and vegetables play in maintaining a healthy diet.

Our market will offer a unique shopping experience where customers can enjoy a wide variety of produce, learn about the benefits of incorporating more fruits and vegetables into their diets, and discover new and exotic varieties. We are dedicated to creating a welcoming environment where everyone can find something to enrich their meals and support their well-being.

By focusing on local and organic sourcing, we also contribute to the sustainability of our food systems and the prosperity of local farmers, aligning our business with the values of environmental stewardship and community support.

Project Owner

The project owner is an individual with a profound passion for healthy living and community engagement. With a background in agricultural studies and experience in the food retail industry, they are well-equipped to establish a market that prioritizes quality and freshness.

They bring a wealth of knowledge about the seasonality and sourcing of produce, and are committed to creating a marketplace that reflects the diversity and richness of nature's offerings. Their dedication to health, nutrition, and sustainability drives them to build a market that not only sells fruits and vegetables but also educates and inspires the community to embrace a healthier, more sustainable lifestyle.

Their vision is to create a space where the joy of fresh, wholesome food is accessible to all, and where the market serves as a vibrant gathering place for people to connect with their food and each other.

The Market Study

Market segments.

The market segments for this fruit and vegetable market are diverse and cater to a wide range of consumers.

Firstly, there are health-conscious individuals who prioritize fresh, organic produce in their diets for wellness and nutritional benefits.

Secondly, the market serves customers who are looking for locally-sourced and seasonal produce to support community farmers and reduce their carbon footprint.

Additionally, the market attracts individuals with specific dietary needs, such as vegans, vegetarians, and those with food sensitivities who require a variety of fresh produce options.

Culinary professionals, including chefs and caterers, represent another segment, seeking high-quality ingredients to enhance their dishes.

SWOT Analysis

A SWOT analysis of the fruit and vegetable market project highlights several key factors.

Strengths include a strong focus on fresh, high-quality produce, relationships with local farmers, and a commitment to sustainability and eco-friendly practices.

Weaknesses might involve the perishable nature of inventory, the need for constant supply chain management, and potential seasonal fluctuations in product availability.

Opportunities exist in expanding the market's reach through online sales and delivery services, as well as in educating consumers about the benefits of eating fresh and local produce.

Threats could include competition from larger grocery chains with more buying power, adverse weather affecting crop yields, and potential economic downturns reducing consumer spending on premium produce.

Competitor Analysis

Competitor analysis in the fruit and vegetable market sector indicates a varied landscape.

Direct competitors include other local markets, organic food stores, and large supermarkets with extensive produce sections.

These competitors vie for customers who value convenience, variety, and price.

Potential competitive advantages for our market include superior product freshness, strong community ties, exceptional customer service, and a focus on sustainable and ethical sourcing.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring customer loyalty.

Competitive Advantages

Our fruit and vegetable market's dedication to offering the freshest and highest quality produce sets us apart from the competition.

We provide a wide array of fruits and vegetables, including rare and exotic items, to cater to the diverse tastes and needs of our customers.

Our commitment to sustainability, through supporting local farmers and minimizing waste, resonates with environmentally conscious consumers.

We also emphasize transparency and education about the source and benefits of our produce, fostering a trusting relationship with our clientele.

You can also read our articles about: - how to open a fruit and vegetable store: a complete guide - the customer segments of a fruit and vegetable store - the competition study for a fruit and vegetable store

The Strategy

Development plan.

Our three-year development plan for the fresh fruit and vegetable market is designed to promote healthy living within the community.

In the first year, our goal is to establish a strong local presence by sourcing a wide variety of high-quality, seasonal produce and building relationships with local farmers and suppliers.

The second year will focus on expanding our reach by setting up additional market locations and possibly introducing mobile market services to access a broader customer base.

In the third year, we plan to diversify our offerings by including organic and exotic fruits and vegetables, as well as implementing educational programs on nutrition and sustainable agriculture.

Throughout this period, we will be committed to sustainability, community engagement, and providing exceptional service to ensure we become a staple in our customers' healthy lifestyles.

Business Model Canvas

The Business Model Canvas for our fruit and vegetable market targets health-conscious consumers and those looking for fresh, local produce.

Our value proposition is centered on offering the freshest, high-quality fruits and vegetables, with a focus on local and organic options, and providing exceptional customer service.

We will sell our products through our physical market locations and consider an online ordering system for customer convenience, utilizing our key resources such as our relationships with local farmers and our knowledgeable staff.

Key activities include sourcing and curating produce, maintaining quality control, and engaging with the community.

Our revenue streams will be generated from the sales of produce, while our costs will be associated with procurement, operations, and marketing efforts.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on community engagement and education.

We aim to highlight the health benefits of fresh produce and the environmental advantages of buying locally. Our approach includes community events, cooking demonstrations, and partnerships with local health and wellness organizations.

We will also leverage social media to showcase our daily offerings, share tips on healthy eating, and feature stories from our partner farmers.

Additionally, we plan to offer loyalty programs and seasonal promotions to encourage repeat business and attract new customers.

Risk Policy

The risk policy for our fruit and vegetable market focuses on mitigating risks associated with perishable goods, supply chain management, and market fluctuations.

We will implement strict quality control measures and develop a robust inventory management system to minimize waste and ensure product freshness.

Building strong relationships with a diverse group of suppliers will help us manage supply risks and price volatility.

We will also maintain a conservative financial strategy to manage operational costs effectively and ensure business sustainability.

Insurance coverage will be in place to protect against unforeseen events that could impact our business operations.

Why Our Project is Viable

We believe in the viability of a fruit and vegetable market that prioritizes freshness, quality, and community health.

With a growing trend towards healthy eating and local sourcing, our market is well-positioned to meet consumer demand.

We are committed to creating a shopping experience that supports local agriculture and provides educational value to our customers.

Adaptable to market trends and customer feedback, we are excited about the potential of our fruit and vegetable market to become a cornerstone of healthy living in our community.

You can also read our articles about: - the Business Model Canvas of a fruit and vegetable store - the marketing strategy for a fruit and vegetable store

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a fruit and vegetable market and our financial plan for a fruit and vegetable market .

Initial expenses for our fruit and vegetable market include costs for securing a retail space in a high-traffic area, purchasing refrigeration units and display equipment to maintain and showcase fresh produce, obtaining necessary permits and licenses, investing in a robust inventory management system, and launching marketing initiatives to attract customers to our location.

Our revenue assumptions are based on an in-depth analysis of the local market demand for fresh, high-quality fruits and vegetables, taking into account the increasing trend towards healthy eating and organic produce.

We expect sales to grow steadily as we establish our market's reputation for offering a wide variety of fresh and locally sourced produce.

The projected income statement outlines expected revenues from the sale of fruits and vegetables, cost of goods sold (including procurement, transportation, and storage), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our fruit and vegetable market.

The projected balance sheet will reflect assets such as refrigeration and display equipment, inventory of fresh produce, and liabilities including any loans and operational expenses.

It will provide a snapshot of the financial condition of our market at the end of each fiscal period.

Our projected cash flow statement will detail all cash inflows from sales and outflows for expenses, helping us to predict our financial needs and ensure we have sufficient funds to operate smoothly.

The projected financing plan will outline the sources of funding we intend to tap into to cover our initial setup costs and any additional financing needs.

The working capital requirement for our market will be carefully managed to maintain adequate liquidity for day-to-day operations, such as purchasing fresh stock, managing inventory, and covering staff wages.

The break-even analysis will determine the volume of sales we need to achieve to cover all our costs and begin generating a profit, marking the point at which our market becomes financially sustainable.

Key performance indicators we will monitor include the turnover rate of our inventory, the gross margin on produce sales, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to gauge the profitability of the capital invested in our market.

These metrics will be instrumental in assessing the financial performance and overall success of our fruit and vegetable market.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a fruit and vegetable store .

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Friday, March 20, 2020

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EU Nations to Question IMF Chief Over New Russia Engagement

(Bloomberg) -- Several European Union nations intend to challenge International Monetary Fund chief Kristalina Georgieva about the Washington-based lender’s plan to engage with Russia on economic issues for the first time since the invasion of Ukraine. 

At a meeting of EU envoys Wednesday, France, Belgium and Poland, as well as several Baltic and Nordic nations, said they were surprised by the IMF’s decision earlier this month to restart annual economic reviews with Moscow, according to people familiar with the matter.

A Lithuanian representative said the country planned to raise the issue directly with Georgieva during a lunch meeting Saturday in Budapest with European finance ministers, said the people, who asked not to be identified as the meeting was private. 

The diplomat added that they see the move offering President Vladimir Putin economic assistance and a veneer of legitimacy as the EU and the US seek to isolate Russia. 

Lithuania’s representative also said during the Wednesday meeting that the first mission by a major international organization to Russia since the February 2022 invasion could be used by Moscow as propaganda to show its international isolation is easing, the people said. 

It also plans to send a letter to Georgieva, which it expects to be signed by several EU members, expressing concern over a process that appears to be leading toward normalizing relations with Moscow, they said.

The IMF said earlier this week that it’s restarting annual reviews of Russia’s economy because the region’s economic situation is “more settled” than before. The review, known as an Article IV evaluation, is a “mutual obligation” of the fund and its members, it had said. 

“Article IVs are not an option, but an institutional obligation for the fund and are carried out for the benefit of the whole of the membership,” the IMF said in an emailed response to questions Thursday. 

“We now believe that we are in a situation where we can provide economic analysis,” the head of the fund’s European Department, Alfred Kammer, said in an interview. 

Both the IMF and Russia have declined to clarify who initiated the restart. 

US Treasury Secretary Janet Yellen said in an interview last week that she didn’t object to the annual review, but would have an issue with Moscow receiving IMF financial support. Treasury declined to comment further. Russia hasn’t applied for IMF aid since 2000.

The IMF has said its staff would start discussions virtually with Russian authorities on Sept. 16 and then travel to the country for in-person discussions. That visit is scheduled to start Oct. 1, according to the people, with one adding that the IMF had tried to convince Russia to hold the meetings in a third country. 

The move came shortly after Ksenia Yudaeva, a former first deputy governor at Russia’s central bank, was appointed by Moscow as its representative on the executive board. She’s replacing Alexey Mozhin, who had held the position since the 1990s.

Russia’s economy grew 4% annually in the second quarter, the country’s Federal Statistics Service estimated last month. Growth is likely to slow over the rest of the year, according to economists surveyed by Bloomberg.

--With assistance from Daryna Krasnolutska and Eric Martin.

(Updates with IMF comment in eighth paragraph.)

©2024 Bloomberg L.P.

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